Default Rule
/ˈdɪf.ɔːlt ruːl/
Definitions
- (n.) A legally binding provision that applies automatically in the absence of an agreement to the contrary by the parties.
The default rule governed the parties' obligations since their contract was silent on the matter.
- (n.) In statutory or common law, a provision that sets a standard norm or default procedure unless altered by explicit agreement or statute.
Default rules in corporate law often fill gaps not addressed in the company’s charter.
Forms
- default rules
Related terms
See also
Commentary
Default rules serve to facilitate transactions by providing standard norms that parties can rely upon but are free to override by agreement.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.