After several missed payments, the lender tells Sofia Turner that the entire unpaid loan balance is now due at once rather than in monthly installments. Which clause is being enforced?
Correct Answer
C) Acceleration clause
Acceleration clause is correct because the facts match a loan provision allowing the lender to demand immediate payment of the entire remaining balance after a default or other specified event. That is the best description of the relationship, right, or legal concept tested here.
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