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Termination for payment default | Freight-Academy™

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GlossaryEN1 min readUpdated: Jun 13, 2026

Termination for payment default

Termination for payment default grants a creditor the right to dissolve a contract when the debtor fails to pay due amounts within the agreed period.

Quick Answer

Termination for payment default grants a creditor the right to dissolve a contract when the debtor fails to pay due amounts within the agreed period.

For freight forwarders, shipping lines, and logistics providers, this is a critical risk mitigation tool: if a customer remains in arrears beyond the contractual payment term, the service provider…

Contract clauses and commercial law govern whether and under what conditions such termination applies—payment grace period, notice of default, minimum outstanding amount.

Last updated: 13 June 2026Published: 27 January 2026

Source: https://de.wikipedia.org/wiki/Zahlungsverzug

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Termination for payment default

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Definition & Explanation

Termination for payment default grants a creditor the right to dissolve a contract when the debtor fails to pay due amounts within the agreed period. For freight forwarders, shipping lines, and logistics providers, this is a critical risk mitigation tool: if a customer remains in arrears beyond the contractual payment term, the service provider can terminate and cease further performance without penalty. Contract clauses and commercial law govern whether and under what conditions such termination applies—payment grace period, notice of default, minimum outstanding amount.

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Recommended format: Source: Freight Academy – Termination for payment default (https://www.freight-academy.com/en/glossary/termination-for-payment-default), accessed 2026-09-12
APA style: Freight Academy Editorial Team. (2026). Termination for payment default. Freight Academy. https://www.freight-academy.com/en/glossary/termination-for-payment-default
BibTeX: @misc{terminationforpayment2026, title = {Termination for payment default}, author = {{Freight Academy Editorial Team}}, year = {2026}, url = {https://www.freight-academy.com/en/glossary/termination-for-payment-default}, note = {Freight Academy, accessed 2026-09-12} }

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