Definition of Drop Dead Date
What is a "drop dead date"? What is meant by the term "drop dead date"?
A "drop dead date" is the date by which something MUST be completed. There can be no extensions past a "drop dead date". In addition, when a "drop dead date" is passed without a completed deal, there are usually consequences for one of the parties that are involved in the transaction.
For instance, let's say that XYZ Contracting, Inc. submits a bid to build a new restaurant in town. The restaurant owner is on a tight deadline, and the restaurant MUST be open within two months of the signing of the contract, per the terms of the deal.
According to the contract, the "drop dead date" for the deal is August 15th. The restaurant owner can not push past the "drop dead date", as he is inviting hundreds of colleagues to his grand opening on August 16th.
The contract between the two parties states that if the restaurant is not ready by the "drop dead date", then the contractor will agree to reimburse the restaurant owner 25% of the money that was used to build the restaurant.
In this case, the drop dead date is August 15th. If the restaurant has not been completed by August 15th, then there will be consequences for the contractor.
Davemanuel.com Articles That Mention Drop Dead Date:
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Geithner: Drop Dead Date is Now August 2nd, Not July 8th