GRACE PERIOD
grace period. 1. A period of extra time allowed for taking some required action (such as
making payment) without incurring the usual penalty for being late. • Insurance policies typically
provide for a grace period of 30 days beyond the premium’s due date, during which the premium
may be paid without the policy being canceled. And Article 9 of the UCC provides for a ten-day
grace period, after the collateral is received, during which a purchase-money security interest must
be perfected to have priority over any conflicting security interests. — Also termed days of grace;
grace days. 2.Patents. The one-year interval allowed by the U.S. Patent Act between the time an
invention is used in public, sold, offered for sale, or disclosed in a publication and the time the
inventor applies for a patent. • Most countries follow the doctrine of absolute priority and do not
allow a grace period. — Sometimes shortened to grace. Cf. STATUTORY BAR; absolute novelty
under NOVELTY. [Blacks Law 8th]