Generally, failure to fulfill an act or obligation. In lending, when a borrower has not met its legal
obligations according to a debt contract he or she is in default. For example, a borrower defaults on a
loan if he or she fails to make one or more scheduled payments. In leasing, when a tenant fails to
meet its obligations under the lease. For example, the tenant defaults if he or she does not pay the
rent when it is due.
