Analee bought a widget from Nathan.On March 1, she paid the purchase price by giving him a promissory note for $100 000.The entire payment is due on June 1, but the note contains an acceleration clause.That means that Nathan has the absolute right to receive payment before June 1 if he wants.

Question

Quizplus · Accepted Answer

An acceleration clause does not grant the holder the absolute right to demand payment before the specified due date without a triggering event, such as a default or breach of the agreement terms by the other party.

Analee Bought a Widget from Nathan