Ipso Facto Clauses
- May 22, 2012
- Posted by: Seth Heyman
- Categories: Business Law, Contract Law
Ipso Facto means “by the fact itself,” and an ipso facto clause is a contract provision which states that the contract may be terminated if either party declares bankruptcy. In other words, the very fact that one party declares bankruptcy is supposedly enough to end the contract and terminate the benefits and obligations of both parties.