Simple Definition of grace period
: an amount of extra time that someone is given to pay a bill, finish a project, etc.
Full Definition of grace period
: a period of time beyond a due date during which a financial obligation may be met without penalty or cancellation
Examples of grace period in a sentence
The terms of the loan allow for a ten-day grace period.
First Known Use of grace period
Legal Definition of grace period
: a period of time beyond a scheduled date during which a required action (as payment of an obligation) may be taken without incurring the ordinarily resulting adverse consequences (as penalty or cancellation): as a : a period of 30 days or one month during which premiums on insurance policies may be paid without penalty b : a period of ten days during which certain security interests (as those in fixtures) must be perfected in order to have priority over conflicting security interests under Article 9 of the Uniform Commercial Code —called also days of grace
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