Acceleration

Acceleration is a legal principle that allows a party to demand the immediate performance of a contractual obligation when certain conditions are met, such as a breach of contract. This principle is commonly referenced in the context of loan agreements where the lender can demand full repayment upon default.

The concept of acceleration originates from contract law, particularly in the context of secured transactions and mortgages, where it serves to protect the interests of lenders. It has been a part of common law principles governing contracts since the medieval period.

In modern law, the acceleration clause is frequently found in various contracts, notably finance and lease agreements. It allows lenders to expedite payment terms upon a borrower's default, thereby ensuring liability and protecting their rights against potential losses.

• A homeowner defaults on their mortgage payments, triggering an acceleration clause that requires the total outstanding loan amount to be repaid immediately.
• A business loan agreement includes an acceleration provision stating that if the borrower misses two consecutive payments, the lender can demand the full balance of the loan.

• Beyer v. D.G. Fischer & Sons, Inc.