Legal Definition of ipso facto clause
: a clause in an agreement stipulating the consequences (as termination of a lease or acceleration of a payment) of the insolvency of one of the parties
— called also bankruptcy clause, ipso facto bankruptcy clause
Note: An ipso facto clause is invalid under the Bankruptcy Code because a trustee is not bound by any provision or applicable law that is conditioned on the debtor's insolvency.
Comments on ipso facto clause
What made you want to look up ipso facto clause? Please tell us where you read or heard it (including the quote, if possible).
Test Your Vocabulary
Slippery Words Quiz—Changing with the Times
- What is an earlier meaning of nice?
Test your visual vocabulary with our 10-question challenge!
TAKE THE QUIZ
A daily challenge for crossword fanatics.
TAKE THE QUIZLove words? Need even more definitions?
Merriam-Webster unabridgedWords at Play
Ask the Editors
Word Games
- Slippery Words Quiz—Changing with the Times
Do you know these earlier meanings of words?
Take the quiz - Words of Snow and Ice Quiz
A selection of words from the chillier parts of t...
Take the quiz - Name That Thing
Test your visual vocabulary with our 10-question ...
Take the quiz - Word Winder's CrossWinder Play the game
Share ipso facto clause