In trade and contract law, a drop dead date is a provision

Provision

Provision may refer to:* Provision , an industrial dance / synthpop band from Houston, Texas, USA* Provision , a term for liability in accounting* Provision , a term for a procurement condition...

 added to a legal or trade act, such as a contract

Contract

A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...

 or a court order

Court order

A court order is an official proclamation by a judge that defines the legal relationships between the parties to a hearing, a trial, an appeal or other court proceedings. Such ruling requires or authorizes the carrying out of certain steps by one or more parties to a case...

. Such a provision sets a last-delay date (hence the name drop dead date) past which certain consequences will automatically follow, such as cancelling the contract, taking property

Property

Property is any physical or intangible entity that is owned by a person or jointly by a group of people or a legal entity like a corporation...

 or entering a judgment.

In contract law, a typical drop dead date example is the contract for the baking of a birthday cake, where it is implied that a late delivery will constitute a material breach.

In German and Swiss Law, this is called a "Fixgeschäft".