Grace Days

An extra three days which are given to drawee after due date for payment are called grace days.

A grace period may be a time past the point for an obligation during which a late penalty that may are obligatory is waived. Grace periods, which may range from a number of minutes to variety of days or longer, looking on the context, will apply in various situations, together with arrival at a job, paying a bill, for meeting a government or legal requirement, or in several other situations.

Advantages and Disadvantages

Grace periods will give some advantages. as an example, people that routinely are on time for his or her obligations, however due to occasional unforeseen circumstances are late on a rare occasion, will avoid a penalty for being late within the grace period and maintain their reputation for timeliness.

However, habitual procrastinators could come to look at the grace period as the actual point, and if, attributable to unforeseen circumstances, they're often late beyond that, they may complain about the applied penalty.