Grace Period Legal Meaning and Definition

Here is a simplified definition of the legal term Grace Period.

Grace Period (noun): A "Grace Period" refers to the extra time period allocated, beyond the original due date or an agreed term, for a task or responsibility to be completed without penalty. During the grace period, there will be no punishment or additional charges for the late fulfillment of obligations. For instance, a bank may offer a grace period after a loan payment due date, in which the borrower can pay without incurring additional fees or breaching the contract.