Delayed payments clause: Copy, customize, and use instantly
Introduction
A delayed payments clause outlines the conditions and consequences if a payment is not made on time. It specifies how overdue payments will be treated, including potential penalties, interest accrual, and other remedies available to the non-defaulting party. This clause ensures that both parties understand the expectations and consequences related to late payments, helping to manage cash flow and protect against financial risk.
Below are templates for delayed payments clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard delayed payments clause
This version provides a simple approach to handling delayed payments.
If payment is not received by the due date, [Party B] will be considered in default. Interest will accrue on the overdue amount at a rate of [X]% per annum from the due date until the payment is received in full. [Party B] will be notified of the overdue amount and given an additional [X] days to make payment before further actions are taken.
Delayed payments clause with provision for penalty fee
This version applies a penalty fee for delayed payments.
If payment is not received within [X] days of the due date, [Party B] agrees to pay a penalty fee of [X]% of the overdue amount. This penalty fee will be in addition to any interest accrued under the terms of this Agreement.
Delayed payments clause with provision for grace period
This version includes a grace period before penalties are applied.
[Party B] will be granted a grace period of [X] days after the due date to make payment without incurring any penalties. After the grace period, interest will accrue on the overdue balance at a rate of [X]% per annum, compounded monthly.
Delayed payments clause with provision for suspension of services
This version suspends services in case of delayed payments.
In the event that payment is delayed for more than [X] days, [Party A] reserves the right to suspend all services under this Agreement until the overdue balance is paid in full. A reactivation fee of [X]% may be applied to resume services.
Delayed payments clause with provision for accelerated payment
This version accelerates payment after delays.
If any payment is delayed for more than [X] days, [Party A] has the right to accelerate the payment schedule, making the entire remaining balance due immediately. This clause will be activated if [Party B] fails to remedy the overdue payment after receiving notice.
Delayed payments clause with provision for automatic interest
This version applies automatic interest.
If payment is not received by the due date, interest will automatically accrue on the overdue balance at a rate of [X]% per annum, compounded monthly, and will be added to the outstanding amount until it is paid in full.
Delayed payments clause with provision for right to demand full payment
This version allows the right to demand full payment.
If any payment remains overdue for more than [X] days, [Party A] may demand immediate full payment of the outstanding balance, including any accrued interest and penalties.
Delayed payments clause with provision for interest plus administrative fees
This version adds administrative fees to interest.
In the event of delayed payment, interest will accrue at a rate of [X]% per annum, compounded monthly. Additionally, [Party B] will incur an administrative fee of [X] dollars for each month that payment is overdue.
Delayed payments clause with provision for payment plan for overdue amounts
This version offers a payment plan for overdue amounts.
If payment is delayed beyond the due date, [Party B] may request a revised payment plan to settle the overdue amount. The new terms will include a schedule of payments over [X] months, with an interest rate of [X]% applied to the outstanding balance.
Delayed payments clause with provision for payment default notice
This version includes a formal notice of payment default.
If payment is not received within [X] days of the due date, [Party A] will send a formal payment default notice. After [X] additional days, interest will accrue at a rate of [X]% per annum on the overdue balance.
Delayed payments clause with provision for suspension of delivery
This version suspends delivery after delays.
If payment is delayed for more than [X] days, [Party A] reserves the right to suspend any further deliveries under this Agreement until the overdue balance is paid in full.
Delayed payments clause with provision for payment by credit card
This version allows payment via credit card.
If payment is delayed, [Party B] agrees to settle the outstanding amount by credit card within [X] days of the due date. A processing fee of [X]% will be added for payments made via credit card.
Delayed payments clause with provision for late payment agreement
This version allows for a late payment agreement.
If payment is delayed, [Party B] and [Party A] agree to negotiate a late payment agreement, which will include new payment terms, an interest rate of [X]% per annum, and a penalty of [X] dollars for every [X] days the payment is overdue.
Delayed payments clause with provision for additional costs
This version includes additional costs due to delays.
In addition to the interest, [Party B] will be responsible for any additional costs incurred by [Party A] as a result of the delayed payment, including legal fees, administrative costs, and costs of collection efforts.
Delayed payments clause with provision for renegotiation of terms
This version allows for renegotiation of terms.
If payment is delayed by more than [X] days, the Parties agree to renegotiate the terms of the Agreement, including but not limited to the price, timelines, and scope of services, to reflect the change in circumstances.
Delayed payments clause with provision for payment extension
This version offers an extension for payment.
In the event of a delayed payment, [Party B] may request an extension of up to [X] days, subject to [Party A]’s approval. The extended period will be subject to an interest rate of [X]% per annum on the outstanding amount.
Delayed payments clause with provision for immediate action on overdue amounts
This version allows immediate action on overdue amounts.
If payment is overdue for more than [X] days, [Party A] has the right to take immediate action, including suspending the contract, initiating debt recovery procedures, or accelerating the payment schedule for the remaining balance.
Delayed payments clause with provision for payment at end of term
This version allows payment at the end of the term.
If [Party B] fails to make payment by the due date, [Party A] agrees to extend the payment term until the end of the [X] months. However, interest at a rate of [X]% per annum will be applied to the overdue balance during the extended period.
Delayed payments clause with provision for legal action after prolonged delays
This version includes legal action after delays.
If payment is delayed for more than [X] days without any agreed-upon payment plan or extension, [Party A] reserves the right to initiate legal action to recover the overdue amounts, including interest and any associated legal costs.
Delayed payments clause with provision for suspension of benefits
This version suspends benefits during delays.
If any payment is delayed by more than [X] days, any benefits or services provided under this Agreement will be suspended until the outstanding balance is paid. This includes access to services, products, or intellectual property under the Agreement.
Delayed payments clause with provision for a fixed late fee
This version applies a fixed late fee.
In the event of delayed payment, [Party B] agrees to pay a late fee of [X] dollars for every [X] days the payment remains overdue, in addition to the interest rate of [X]% per annum applied to the outstanding balance.
Delayed payments clause with provision for interest-free period
This version offers an interest-free period.
No interest will accrue on overdue payments if the outstanding balance is paid in full within [X] days after the original due date. After this interest-free period, interest will accrue at a rate of [X]% per annum.
Delayed payments clause with provision for payment disputes
This version addresses payment disputes.
In case of a payment dispute, the Parties agree to negotiate the dispute in good faith. However, if the dispute is unresolved for more than [X] days, interest will accrue on the unpaid balance at a rate of [X]% per annum.
Delayed payments clause with provision for partial payment adjustments
This version applies to partial payments.
If [Party B] makes partial payments, interest will accrue on the unpaid portion at a rate of [X]% per annum, compounded daily, and any adjustment to the total amount owed will be made once the final payment is made.
Delayed payments clause with provision for automatic payment extension
This version automatically extends the payment period.
If payment is delayed beyond the due date, the payment period will automatically extend by [X] days without penalty. If payment is not received within this extended period, interest will accrue at a rate of [X]% per annum.
Delayed payments clause with provision for default interest
This version applies a default interest rate.
If any payment is delayed by more than [X] days, the overdue amount will accrue interest at a rate of [X]% per annum, compounded monthly. The interest will apply to the entire overdue balance and continue until payment is made in full.
Delayed payments clause with provision for suspension of rights
This version suspends rights in the event of delay.
In the event of delayed payment, all rights under this Agreement, including access to goods and services, will be suspended until the full amount, including accrued interest, is paid.
Delayed payments clause with provision for early resolution of overdue amounts
This version allows early resolution of overdue amounts.
If [Party B] resolves overdue payments within [X] days of the due date, interest will be waived. After this period, interest will accrue at a rate of [X]% per annum, starting from the due date.
Delayed payments clause with provision for negotiated penalties
This version allows negotiation of penalties.
In the event of delayed payment, [Party A] may negotiate an appropriate penalty with [Party B]. If no agreement is reached within [X] days, a penalty of [X]% of the overdue amount will be charged.
Delayed payments clause with provision for additional time if mutually agreed
This version allows additional time based on mutual agreement.
If [Party B] requests additional time to make payment, both Parties agree to negotiate and mutually agree to a new payment date. This extension may involve adjustments to interest rates, fees, or penalties.
Delayed payments clause with provision for interest adjustment based on overdue amount
This version adjusts interest based on the overdue amount.
If the overdue amount exceeds [$X], the interest rate will increase to [Y]% per annum, compounded monthly, until the outstanding balance is settled.
Delayed payments clause with provision for extended term due to financial hardship
This version extends payment terms due to financial hardship.
In the event of financial hardship, [Party B] may request an extension of the payment terms for up to [X] days. During this period, no interest will be charged. After the extended period, interest will accrue at a rate of [X]% per annum.
Delayed payments clause with provision for renegotiation of terms
This version allows renegotiation of terms in case of delays.
If payment is delayed for more than [X] days, both Parties agree to renegotiate the payment schedule, including potential adjustments to the interest rate, payment amounts, or due dates.
Delayed payments clause with provision for payment reminder notices
This version includes reminder notices.
[Party A] will send a reminder notice if payment is delayed by more than [X] days. If payment is not received within [X] days of the reminder notice, a late fee of [X]% of the overdue balance will be charged.
Delayed payments clause with provision for a default payment fee
This version charges a default payment fee.
If payment is not received by the original due date, a default payment fee of [X] dollars will be charged, in addition to any interest that accrues on the overdue balance.
Delayed payments clause with provision for grace period with late payment fee
This version includes a grace period with a late payment fee.
[Party B] is granted a grace period of [X] days to make payment. After the grace period, a late payment fee of [X]% of the overdue amount will be added, along with interest at a rate of [X]% per annum.
Delayed payments clause with provision for part payments with interest
This version includes part payments with interest.
If [Party B] makes part payments, interest will be applied to the remaining balance at a rate of [X]% per annum. The interest will continue to accrue on the unpaid portion until the full balance is paid.
Delayed payments clause with provision for payment in goods or services
This version allows payment in goods or services.
If payment is delayed, [Party B] may settle the overdue balance by providing goods or services of equivalent value. If this method of payment is not acceptable, interest will accrue at a rate of [X]% per annum on the overdue amount.
Delayed payments clause with provision for upfront interest payment
This version requires upfront interest payment.
If the payment is delayed, [Party B] agrees to pay interest on the overdue amount upfront. The interest will be calculated based on [X]% per annum from the original due date until the overdue amount is settled.
Delayed payments clause with provision for automatic late fee
This version automatically applies a late fee.
If payment is not received by the due date, a late fee of [X] dollars will be automatically applied to the outstanding balance, in addition to any interest that accrues on the overdue amount.
Delayed payments clause with provision for early settlement discount
This version includes an early settlement discount.
If [Party B] settles the overdue amount within [X] days of receiving a payment reminder, a discount of [X]% will be applied to the total overdue balance. If not paid within this period, interest will accrue at a rate of [X]% per annum.
Delayed payments clause with provision for interest-free period for partial payments
This version allows an interest-free period for partial payments.
If [Party B] makes partial payments, no interest will accrue for the first [X] days after the due date. After this period, interest will be applied at a rate of [X]% per annum on the outstanding balance.
Delayed payments clause with provision for escalation of interest after specific period
This version increases interest after a period.
If payment remains overdue for more than [X] days, the interest rate will escalate to [Y]% per annum. The new rate will apply to the outstanding balance from the date the interest escalation takes effect.
Delayed payments clause with provision for non-payment legal action
This version includes legal action for non-payment.
If payment is not received after [X] days, [Party A] reserves the right to initiate legal action to recover the outstanding amount. The total amount owed will include accrued interest and any associated legal costs.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.