Grace Period: An agreed-on time after an obligation is past due during which a party can perform without being considered in default. For example, if a mortgage payment is due March 1 but the mortgage contains a 10-day grace period, the mortgagor is not in default so long as payment is made by March 10. Also known as days of grace.
With monetary defaults, there is usually no requirement of prior written notice to the debtor. But with non-monetary defaults such as waste or failure to keep a property insured, the grace period usually begins to run only after written notice is given.