Grace Period Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Grace Period, written in plain English, along with examples of how it is used.

What is Grace Period?

(n) Grace Period is the additional time provided in an agreement with in which a performance as per a contract can be executed after the expiry of the time set for doing that activity, without attracting any penal provisions. Eg. Bank guarantee can be revoked within its validity period, It may provide a grace period after its validity so that beneficiary can claim guarantee performance during such extended time.