Glossary · contract

Notice Provision

Also called notices clause, notice requirements, manner of notice.

The clause setting how formal communication under the agreement must be delivered, to which address, and when it counts as received — which decides whether your objection, cure or cancellation was made in time.

Drafted with AI assistance. Not yet independently checked. Nobody has verified the claims on this page against a source, so treat the figures and legal points as a starting point rather than as settled, and confirm anything you are about to act on. How we check things.

What it means

Every substantive right in a finance agreement runs through this clause. A right to cure is worthless if the default notice was validly served on an address you left two years ago. A right to cancel is worthless if you told your account manager instead of sending certified mail to the general counsel.

What the clause specifies

  • Permitted methods. Personal delivery, certified or registered mail return receipt requested, nationally recognised overnight courier, and sometimes email — often with a condition that email alone is insufficient for notices of default or termination
  • Addresses. A specific street address and an attention line, frequently with a copy to counsel at a second address
  • Deemed receipt. When notice counts as given: on delivery, on the courier's next business day, or a stated number of days after mailing, whether or not you actually received it
  • Change of address. A duty to notify a change, using the same formal method, before the new address counts

Notices that matter

Notice of default and the cure clock it starts. Notice of termination or non-renewal under an evergreen clause. Requests for reconciliation under an advance agreement. Notices of assignment to your customers. Objections to a fee, a rate change or an amendment. Insurance cancellation notices to a lender.

Where this one catches people

Two failures, one on each side of the transaction.

Yours: sending something that is not notice. An email to a salesperson, a call to the servicing line, a message in a portal — none of these satisfy a clause that requires certified mail to a named officer, and businesses discover this months later when they are told the factoring agreement renewed or the reconciliation was never formally requested. Whatever the clause requires, do exactly that, keep the receipt, and send the informal version as well if it helps.

Theirs: a default notice mailed to the address on a three-year-old application. Under a deemed-receipt rule, the cure period can start running and expire while the envelope sits at a building you moved out of. Update your notice address in writing, by the method the clause specifies, every time you move, and keep the copy.

Where you will meet this term

Merchant Cash Advance Term Loan Business Line of Credit Equipment Financing Invoice Financing

Read next

Cure periodThe window a contract gives you to fix a breach before it becomes an enforceable default, which many funding … Early termination fee (ETF)A charge for exiting a facility before its stated term, standard in factoring and equipment lease contracts a… Event of default (EOD)Any condition a contract lists as putting the borrower in default, most of which have nothing to do with miss… Evergreen ClauseA term that renews itself for a further period unless you give written notice to cancel inside a specified wi… Notice of assignment (NOA)The written notice telling a customer that its invoices have been assigned to a factor and that payment must … Notice of defaultThe creditor's written statement that a specified default has occurred and what follows from it - and, where … Reconciliation clauseThe contract provision setting out whether, when and how the fixed payment gets adjusted back to the agreed p… Right to cureA contractual window in which a borrower may fix a default before the creditor can accelerate or enforce - pr…

Notice Provision — common questions

What does notice provision mean?

The clause setting how formal communication under the agreement must be delivered, to which address, and when it counts as received — which decides whether your objection, cure or cancellation was made in time.

Where does notice provision catch people out?

Two failures, one on each side of the transaction.

Is notice provision the same as an interest rate?

Notice Provision is defined above; if you are comparing it against a rate, check whether the two measures share a time dimension before you put them side by side.

Which products does notice provision apply to?

Merchant Cash Advance, Term Loan, Business Line of Credit, Equipment Financing, Invoice Financing.

Is there a worked example of notice provision?

Not on this entry. Where a term is arithmetic, the arithmetic is shown; this one is not primarily a calculation.

What else should I read alongside notice provision?

Cure period, Early termination fee, Event of default, Evergreen Clause, Notice of assignment.

Has this definition been checked?

Not yet. This entry is drafted and live, and the notice at the top says so. Confirm anything you are about to act on.

Is this legal advice?

No. It is a definition. What a clause does in your contract, in your state, is a question for a lawyer licensed where you are.

Can I suggest a term?

Yes — [email protected]. The glossary grows from what people are actually shown in contracts.