What is it?
A contractual clause type that governs timing and measurement of obligations on a per‑day basis.
daily
Contract LawLegal glossary term
Quick answer
DAILY usually means a one‑day period for calculation or performance. In contracts, it matters because missing a single day can trigger default or penalties. Before signing, check how days are counted and whether calendar or business days apply.
Definitions
What is daily?
Legal Definition
A daily provision sets a one‑day time frame for calculation or performance, such as interest accruing each day or a notice required within a single day. It creates an obligation that triggers on the next calendar day after the triggering event. Practitioners watch for clauses that convert daily periods into calendar versus business days.
Plain-English Translation
Think of a hall pass that lets a kid leave class for exactly one school day; the pass expires when that day ends, just like a daily clause ends after 24 hours.
Contract relevance
Why daily matters in contracts
Misreading a daily clause can cause missed payments or late‑notice penalties, and the obligor bears the loss.
Document context
Where daily appears in documents
| Document type | Section | Why it matters |
|---|---|---|
| Loan agreement | Interest clause | Determines how interest compounds each day |
| Commercial lease | Notice provision | Sets the deadline for daily cure notices |
| Construction contract | Progress reporting | Requires daily submission of status updates |
Contract language
Common contract wording
| Contract wording | Plain-English meaning | What to check |
|---|---|---|
| "Interest shall accrue daily at a rate of..." | Interest calculated each calendar day | Verify the rate and day count convention |
| "Tenant must provide daily notice of any breach." | One‑day notice required | Confirm whether weekends count |
| "Daily reports shall be delivered by 5 p.m." | Reports due each day | Check time zone and business day definition |
Red flags
Red flags to watch for
Wording examples
Clearer wording examples
Vague wording
"daily"
Clearer wording
"each calendar day"
Vague wording
"daily"
Clearer wording
"each business day, excluding weekends and holidays"
Note: “clearer” means easier to read — not legally reviewed or guaranteed safe.
Pre-signature checklist
What to check before signing
1
Confirm whether "daily" means calendar or business days
2
Ensure the daily rate is expressed as an annual percentage rate (APR)
3
Verify any penalties tied to missing a daily deadline
4
Check if weekends or holidays affect the daily count
5
Look for carve‑outs that override the daily provision
6
Confirm the start point of the daily period (e.g., receipt of notice)
7
Ensure the clause aligns with applicable state statutes
Party impact
How daily affects each party
| Party | What this party should check |
|---|---|
| Lender | Must track daily interest accrual accurately |
| Tenant | Must deliver any required notice within the same day |
| Borrower | Must understand how daily compounding affects total cost |
| Contractor | Must submit daily reports to avoid breach |
Comparison
daily vs similar terms
| Related term | Plain meaning | Main difference from daily |
|---|---|---|
| weekly notice | Notice required each week | Longer period, less immediate pressure |
| monthly payment | Payment due once per month | Different frequency and budgeting impact |
| annualized rate | Interest expressed per year | Converts daily rate to yearly figure |
Missing or vague
If daily is missing or vague
If a contract omits a clear definition of "daily," parties may argue over whether weekends count, leading to disputes over missed notices. Without specifying calendar versus business days, a tenant might think a two‑day window exists, while the landlord expects one. This ambiguity can trigger default judgments, late fees, or even eviction, leaving the obligor to bear unexpected costs.
Document map
Document section map
| Contract section | What to inspect |
|---|---|
| Definitions | Look for how "day" is defined |
| Interest | Review daily rate language |
| Notice | Examine daily cure period |
| Reporting | Check daily submission requirements |
Visual model
Understand daily fast
An explainer image has not been generated for this term yet.
01
Landlord sends a daily rent demand after the tenant’s payment is late, and the tenant must pay by the end of that day to avoid eviction.
02
Borrower accrues interest at a daily rate of 0.05% on the outstanding loan balance, which compounds each day until repayment.
03
Franchisor requires the franchisee to submit a daily sales report by 5 p.m.; failure triggers a penalty the next business day.
Document context
How daily shows up in legal documents
Why does it matter?
Misreading a daily clause can cause missed payments or late‑notice penalties, and the obligor bears the loss.
When does it matter?
When a default event occurs, the daily clock starts and runs for the number of days specified in the contract.
Where is it usually seen?
Standard in loan agreements, commercial leases, and construction contracts; also appears in UCC § 2‑207 amendment notices.
Who is affected?
Lender – must calculate interest each day; Tenant – must provide daily notice to cure; Contractor – must submit daily progress reports to avoid breach.
How does it work?
First, identify the event that triggers the daily period, such as a missed payment. Then count each calendar day until the required action is taken. Within the final day, the obligated party must perform or face default consequences.
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Wikipedia
External reference for daily
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Where daily connects to real contract work
This layer links the term to nearby glossary entries, document use cases, and contract-risk guides so readers can move from definition to context without dead ends.
Glossary
Use Cases
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Employment Contract
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Contract Risks
Late payment clause in freelance contracts
Plain-English risk guide for late payment clause in freelance contracts.
Breach of contract clause
Plain-English risk guide for breach of contract clause.
Late payment penalties contract
Plain-English risk guide for late payment penalties contract.
Source & disclosure
This page is an AI-assisted plain-English explanation based on LexPredict Legal Dictionary context and contract-review patterns. It is not legal advice. Meaning may vary by jurisdiction, industry, and exact clause wording.
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