alleryStart learning →A loan is repayable monthly; default in one instalment makes all due. Penalty?
AYes, it is void entirely
BNo, it is enforced as written
CNo, the Court halves it
DYes, if interest is added
Answer & Solution
Correct answer: B. No, it is enforced as written
An acceleration clause making the unpaid balance due is not a penalty and is enforced as agreed.
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