DEFINITION of 'Drop Dead Date'

A provision in a contract or agreement that stipulates a finite deadline which, if not met, will automatically trigger adverse consequences. The drop dead date is the last possible date on which something must be completed. In most circumstances an extension is not possible.

BREAKING DOWN 'Drop Dead Date'

Time-critical contracts usually contain a drop dead date. For example, a contract for construction of an industrial facility or infrastructure project will stipulate a definite date for the commissioning of the former and completion of the latter. If this deadline is not met, the project contractor may automatically be liable for such damages and penalties as are set out in the project contract.

RELATED TERMS
  1. Delivery Date

    1. The final date by which the underlying commodity for a futures ...
  2. Dated Date

    The date at which interest begins to accrue on a fixed-income ...
  3. Broken Date

    A term used to describe forward and money market contracts, with ...
  4. Long Dated Forward

    A type of forward contract commonly used in foreign currency ...
  5. Trade Date

    The month, day and year that an order is executed in the market. ...
  6. Odd Date

    A type of maturity date for foreign-exchange contracts. Odd dates ...
Related Articles
  1. Trading

    The Difference Between Forwards and Futures

    Both forward and futures contracts allow investors to buy or sell an asset at a specific time and price.
  2. Financial Advisor

    5 Ways to Date on a Budget

    Dating on a budget doesn't have to be boring. Try these 5 tips to find the best dates on a budget.
  3. Financial Advisor

    Target Date Funds Can Be Customized: Here's How

    Target date funds will likely become a permanent fixture in the marketplace for the retirement plan sector. Here's how they have recently improved.
  4. Taxes

    Late with Your Taxes? Grab IRS Form 4868

    Fill out this form to get a few more months to file your tax return. But remember, April 15 is still the payment due date if you owe taxes.
  5. Insights

    The Dead Cat Bounce: A Bear In Bull's Clothing?

    Make sure you know the difference between a change in market outlook and short-term recovery.
  6. Taxes

    Get a 6-Month Tax Extension

    Discover how to get some extra time from the IRS, without paying a hefty penalty for the privilege.
  7. Investing

    What is a Record Date?

    The date established by an issuer of a security for the purpose of determining the holders who are entitled to receive a dividend or distribution.
  8. Insights

    What's a Dead Cat Bounce? InvestoTrivia

    Quiz: What does the financial phrase "Dead Cat Bounce" mean?
  9. Retirement

    An Introduction To Target Date Funds

    Target date mutual funds can be an alternative to bonds and CDs for investors who do not wish to actively manage their savings. The reason: These financial products periodically reallocate fund ...
RELATED FAQS
  1. What is the difference between record date and payable date?

    Learn how to ensure receiving stock dividends by the payment date on record and important dates to keep track of pertaining ... Read Answer >>
  2. Do I own a stock as of the trade date or the settlement date?

    When it comes to buying shares, there are two key dates involved in the transaction. The first date is the trade date, which ... Read Answer >>
  3. How can I find out what date(s) I am supposed to be entitled to ex-dividends?

    Understand the various dates associated with payment of stock dividends and specifically how the determining ex-dividend ... Read Answer >>
  4. When is a dividend payment recognized in the shareholders equity portion of the balance ...

    From an accounting point of view, shareholders' equity is decreased by the total dividend amount on the date it is declared ... Read Answer >>
  5. What is the difference between record date and ex-dividend date?

    Understand the difference between important stock purchase and reporting dates to ensure correct receipt of investment dividend ... Read Answer >>
Hot Definitions
  1. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  2. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  3. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  4. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  5. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  6. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
Trading Center