What is a grace period?
It is expected that all contractual obligations are fulfilled on time. If they are not, the injured party may send a warning. If the breach is not then remedied, it becomes a “fundamental breach of contract” as described above. This usually allows the injured party to cancel the contract and even claim the Agreed Compensation (see below.) However, it is also wise for a contract to have a safety valve known as the “grace period.” This allows either party to be late in fulfilling their obligations – either payment or turning over possession, for example – usually for a period of up to seven days. If you think you are going to be late in payment or if you are transferring money from abroad to make a payment, a smart thing to do is to request seven working days as a grace period. Israeli banks observe Jewish holidays and traditional bank holidays, as well, so your payment may be considered late even if it is held up by all the days the banks are not working. This is not the case if you sti
The Grace Period is a 6-month period of time that begins once a borrower graduates or is no longer enrolled at least half-time in a degree granting program. After the Grace Period, the borrower must begin making regular principal and interest payments. Borrowers are required to make Good Faith or Interest Only Payments during the Grace Period.
