ipso facto clause

noun

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.

Learn More about ipso facto clause

Cite this Entry

“Ipso facto clause.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/ipso%20facto%20clause. Accessed 22 Jan. 2021.

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).

WORD OF THE DAY

Test Your Vocabulary

Slippery Words Quiz—Changing with the Times

  • ducreux self portrait yawning
  • What is an earlier meaning of nice?
Name That Thing

Test your visual vocabulary with our 10-question challenge!

TAKE THE QUIZ
Universal Daily Crossword

A daily challenge for crossword fanatics.

TAKE THE QUIZ
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!