Concept in Definition ABC

Expiration is the date on which a obligation term comes to an end.

Although the term is used in various fields, such as the production and the consumption, the environment academic and many others, in economy maturity refers to the date of payment of an obligation financial.

The expiration date is the one in which a term stipulated by two or more parties ends and because of which, the parties involved must comply with their contractual obligations. In most cases, maturity implies some type of economic or financial payment or settlement.

For example, in the joint of a rental contract, the expiration takes place when the predetermined conditions in the same expire and, therefore, the rental contract lease or rent is no longer valid. The tenants must leave the rented apartment or premises, or renegotiate the conditions of the contract, as the owner deems it.

Another common due date is for the payment of credits or other payments for goods and services. The expiration is the moment of each month or instance of the term in which one of the parties must pay a certain amount of money. Maturities are often used for the payment of services, installments or loans of various kinds.

Often the terms of maturity can be flexible, and if the person concerned does not cancel the payment on the corresponding date, he is granted another chance a little later to cancel the payment.

If the expiration date is not respected, the buyer or contractual party may suffer fines or penalties and even legal penalties. All this is determined in advance in the contract between the interested parties. In the event that the obligor cannot cover the required amount, his assets may be seized.