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.The note contains an acceleration clause.Consequently,Nathan has the absolute right to receive payment before June 1 if he wants.

Question

Quizplus · Accepted Answer

An acceleration clause allows the lender to demand early payment under specific conditions, such as default, but does not give an absolute right to demand payment at any time.

Analee Bought a Widget from Nathan