Form of payment clause: Copy, customize, and use instantly
Introduction
A form of payment clause specifies the acceptable methods or instruments of payment under a contract. This clause ensures clarity on how payments are to be made, reducing the likelihood of disputes. It can also outline timelines, conditions, and any limitations related to payment forms.
Below are templates for form of payment clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard form of payment clause
This variation applies to agreements with basic payment terms.
Payments under this Agreement shall be made in [currency] via [specific method, e.g., wire transfer, check, or credit card] to the account designated by the receiving party. Payment shall be deemed complete upon confirmation of receipt by the receiving party’s financial institution.
Electronic payment clause
This variation applies to agreements requiring electronic transactions.
All payments under this Agreement shall be made via electronic funds transfer (EFT) to the account specified by the receiving party. The paying party shall bear any fees associated with the transfer, and payment shall be deemed complete upon successful transfer confirmation.
Installment payment clause
This variation applies to agreements involving installment payments.
Payments under this Agreement shall be made in [specific number] equal installments of [specific amount] each, payable on the [specific day] of each month. All payments shall be made via [specific method, e.g., wire transfer] to the designated account of the receiving party.
Payment in kind clause
This variation applies to agreements involving non-monetary payments.
The paying party may fulfill its payment obligations under this Agreement through the delivery of [specific goods or services]. The form and value of such payment in kind must be agreed upon in writing by both parties prior to delivery.
Cryptocurrency payment clause
This variation applies to agreements allowing cryptocurrency transactions.
Payments under this Agreement may be made in [specific cryptocurrency, e.g., Bitcoin or Ethereum], to the digital wallet address provided by the receiving party. The exchange rate applicable at the time of payment shall be determined by [specific platform, e.g., Coinbase or Binance].
Cash payment clause
This variation applies to agreements allowing cash as a payment method.
Payments under this Agreement may be made in cash, provided that the total payment does not exceed [specific amount]. Cash payments must be made in person and acknowledged through a signed receipt issued by the receiving party.
Payment by check clause
This variation applies to agreements involving check payments.
Payments under this Agreement shall be made via check, issued to the order of [recipient’s name], and delivered to [specific address]. Payments will be considered complete upon the successful clearing of the check by the receiving party’s financial institution.
Payment via third-party processor clause
This variation applies to agreements involving third-party payment platforms.
Payments under this Agreement shall be processed through [specific platform, e.g., PayPal, Stripe]. The paying party is responsible for any fees charged by the payment processor. Payment shall be deemed complete upon receipt confirmation from the processor.
Mixed payment methods clause
This variation applies to agreements allowing multiple forms of payment.
Payments under this Agreement may be made using a combination of payment methods, including [list acceptable methods, e.g., wire transfer, check, or cryptocurrency]. Each payment method must comply with the terms outlined herein.
Payment in escrow clause
This variation applies to agreements requiring escrowed payments.
All payments under this Agreement shall be deposited into an escrow account managed by [specific escrow agent]. Funds shall be released to the receiving party upon the fulfillment of the conditions outlined in this Agreement.
Advance payment clause
This variation applies to agreements requiring advance payments.
The paying party shall remit [specific percentage]% of the total amount due under this Agreement as an advance payment. The advance shall be paid via [specific method] within [specific number] days of executing this Agreement.
Deferred payment clause
This variation applies to agreements allowing delayed payments.
Payments under this Agreement may be deferred for up to [specific duration] from the due date, provided the paying party submits a written request and obtains prior approval from the receiving party. Interest may accrue on deferred payments at a rate of [specific percentage] per annum.
Payment by credit card clause
This variation applies to agreements allowing credit card payments.
Payments under this Agreement may be made via credit card. The paying party agrees to provide accurate card details and authorizes the receiving party to process payments in accordance with the agreed terms. A surcharge of [specific percentage] may apply to cover transaction fees.
Payment schedule clause
This variation applies to agreements requiring detailed payment schedules.
Payments under this Agreement shall follow the schedule outlined in Exhibit [specific exhibit number]. Each payment shall be made via [specific method] and is due on the specified dates, as detailed in the schedule.
Partial payment clause
This variation applies to agreements allowing partial payments.
Partial payments under this Agreement may be accepted at the discretion of the receiving party. The remaining balance shall be due within [specific number] days of the initial payment, unless otherwise agreed in writing.
Barter payment clause
This variation applies to agreements allowing barter as a form of payment.
Payment under this Agreement may be made in the form of a barter arrangement. The value of the goods or services exchanged must be mutually agreed upon in writing and equal to the amount due.
Payment in foreign currency clause
This variation applies to agreements allowing foreign currency payments.
Payments under this Agreement may be made in [specific foreign currency]. The exchange rate applicable shall be determined based on [specific source, e.g., the rate published by the Central Bank] on the date of payment.
Conditional payment release clause
This variation applies to agreements requiring conditions for payment release.
Payments under this Agreement shall be held by the paying party until [specific condition, e.g., delivery of goods or completion of services] is satisfied. Upon verification of fulfillment, the payment shall be released within [specific number] days.
Mobile payment clause
This variation applies to agreements allowing mobile app payments.
Payments under this Agreement may be made using mobile payment platforms, such as [specific app, e.g., Venmo or Apple Pay]. The receiving party shall provide their registered account details to facilitate payment.
Installment acceleration clause
This variation applies to agreements allowing accelerated payments.
The paying party may accelerate the payment schedule under this Agreement by remitting multiple installments in advance. The receiving party must approve and acknowledge such payments in writing.
Payment with interest clause
This variation applies to agreements adding interest to overdue payments.
Payments not made within [specific number] days of the due date shall accrue interest at a rate of [specific percentage] per annum. The paying party agrees to include the accrued interest with any overdue payment.
Guaranteed payment clause
This variation applies to agreements requiring payment guarantees.
Payments under this Agreement are guaranteed by [specific guarantor]. In the event the paying party defaults, the guarantor shall fulfill the payment obligations within [specific number] days of notice.
Payment in installments with penalty clause
This variation applies to agreements including penalties for missed installments.
Payments under this Agreement shall be made in [specific number] installments. If any installment is missed, a late fee of [specific amount or percentage] shall be applied, and all remaining installments may become immediately due at the discretion of the receiving party.
Form of payment change clause
This variation applies to agreements allowing changes in payment methods.
The paying party may request a change to the form of payment under this Agreement by providing written notice to the receiving party at least [specific number] days before the next scheduled payment. Changes are subject to mutual agreement and confirmation in writing.
Payment with escrow release conditions clause
This variation applies to agreements requiring specific conditions for escrow releases.
Payments under this Agreement shall be deposited into an escrow account managed by [specific escrow agent]. Funds shall only be released to the receiving party upon the completion of [specific conditions, e.g., delivery of goods, project milestones], as verified by the escrow agent.
Payment with milestone approval clause
This variation applies to agreements requiring milestone approvals.
Payments under this Agreement shall be made in increments based on the completion of predefined milestones. Each milestone completion must be documented and approved by both parties before the corresponding payment is made.
Payment via international wire transfer clause
This variation applies to agreements involving cross-border wire transfers.
Payments under this Agreement shall be made via international wire transfer to the account specified by the receiving party. The paying party shall be responsible for any transfer fees or currency conversion charges.
Payment by promissory note clause
This variation applies to agreements involving promissory notes.
Payments under this Agreement shall be secured by a promissory note issued by the paying party. The note shall specify the total amount, interest rate (if applicable), and payment terms, including the due date.
Payment with early settlement discount clause
This variation applies to agreements incentivizing early payments.
The paying party may receive a [specific percentage] discount on the total payment if the payment is made in full before [specific date]. Partial payments are not eligible for the early settlement discount.
Payment in government securities clause
This variation applies to agreements allowing payment in government securities.
Payments under this Agreement may be made in the form of [specific government securities, e.g., Treasury bonds], provided the securities have a market value equal to the payment amount. Any transfer of securities must comply with applicable laws.
Payment with installment escalation clause
This variation applies to agreements with variable installment amounts.
Payments under this Agreement shall be made in installments, with each installment amount increasing by [specific percentage] annually. The escalation schedule shall be outlined in the attached payment schedule.
Payment by letter of credit clause
This variation applies to agreements involving letters of credit.
The paying party shall provide an irrevocable letter of credit issued by [specific financial institution] to guarantee payment under this Agreement. The letter of credit must remain valid until all obligations are fulfilled.
Payment by debit authorization clause
This variation applies to agreements allowing direct debit payments.
The paying party authorizes the receiving party to debit payments directly from their account [specific account details]. All debits shall occur on the due dates specified in this Agreement.
Payment with split allocation clause
This variation applies to agreements dividing payments among multiple recipients.
Payments under this Agreement shall be divided among [specific parties] in the following proportions: [specific percentage or amounts]. Each party’s payment shall be made via [specific method, e.g., wire transfer or check].
Payment by digital wallet clause
This variation applies to agreements allowing payments via digital wallets.
Payments under this Agreement may be made using digital wallets, such as [specific platform, e.g., Google Pay, Samsung Pay]. The receiving party shall provide their registered wallet details to facilitate the transaction.
Payment with variable pricing clause
This variation applies to agreements allowing payment adjustments based on conditions.
Payments under this Agreement shall vary based on [specific factors, e.g., market conditions, exchange rates]. The adjusted payment amount shall be calculated and communicated to the paying party at least [specific number] days before the due date.
Payment in phased percentages clause
This variation applies to agreements dividing payments into phased percentages.
The total payment amount under this Agreement shall be divided into phases, with [specific percentage]% payable upon execution of this Agreement, [specific percentage]% upon completion of [specific milestone], and the remaining balance upon final delivery.
Payment by corporate bond clause
This variation applies to agreements allowing payment in corporate bonds.
Payments under this Agreement may be made through the transfer of corporate bonds with a face value equal to the payment amount. The receiving party must approve the bonds in advance to ensure their acceptability.
Payment with periodic review clause
This variation applies to agreements involving payment term reviews.
The payment terms outlined in this Agreement shall be reviewed by both parties every [specific duration, e.g., six months]. Adjustments to the form or timing of payments must be mutually agreed upon in writing.
Payment subject to tax withholding clause
This variation applies to agreements addressing tax withholding.
Payments under this Agreement shall be subject to applicable tax withholding as required by law. The paying party shall provide a detailed statement of the withheld amounts to the receiving party along with each payment.
Payment via secured bank draft clause
This variation applies to agreements requiring secured bank drafts.
Payments under this Agreement shall be made using secured bank drafts issued by [specific bank]. Drafts must be delivered to the receiving party at [specific address] and will be considered complete upon successful clearance.
Payment by subscription model clause
This variation applies to agreements involving recurring subscription payments.
Payments under this Agreement shall follow a subscription model, with [specific amount] due on a recurring basis (e.g., monthly, annually). Payments shall be automatically deducted from the paying party’s account via [specific method].
Payment with audit rights clause
This variation applies to agreements granting payment audit rights.
The receiving party shall have the right to audit the paying party’s records to verify payment accuracy under this Agreement. Audits may occur once per [specific duration] and must be conducted during normal business hours.
Payment with refundable deposit clause
This variation applies to agreements requiring a deposit that can be refunded.
The paying party shall provide a refundable deposit of [specific amount] upon execution of this Agreement. The deposit shall be returned within [specific time frame] upon satisfactory completion of all obligations under this Agreement, less any deductions for damages or penalties.
Payment through installment milestones clause
This variation applies to agreements requiring installments linked to specific milestones.
Payments under this Agreement shall be made in installments, with each installment due upon completion of predefined milestones, including [specific milestones]. The receiving party must approve the milestone completion before payment is initiated.
Payment via standing order clause
This variation applies to agreements involving automated recurring payments.
Payments under this Agreement shall be made via standing order set up with the paying party’s financial institution. The payments shall be deducted automatically on the agreed-upon due dates and deposited into the receiving party’s account.
Payment in equity clause
This variation applies to agreements allowing payment in equity shares.
Payment under this Agreement may be made in the form of equity shares in the paying party’s organization. The number of shares and their valuation shall be mutually agreed upon and documented in writing before transfer.
Payment subject to exchange rate adjustment clause
This variation applies to agreements involving foreign currency with exchange rate considerations.
Payments under this Agreement shall be made in [specific foreign currency]. The final payment amount shall be adjusted to reflect the exchange rate on the payment date as determined by [specific financial institution].
Payment through payroll deduction clause
This variation applies to agreements involving salary deductions.
The paying party agrees to deduct the payment amount directly from the recipient’s payroll. The deduction shall be itemized on the employee’s payslip and remitted to the designated account of the receiving party.
Payment with proof of delivery clause
This variation applies to agreements requiring delivery verification before payment.
Payments under this Agreement shall be contingent upon the receiving party providing proof of delivery for goods or services. Proof of delivery must include [specific documents, e.g., signed delivery receipt or tracking information].
Payment via certified funds clause
This variation applies to agreements requiring certified funds for payment.
Payments under this Agreement shall be made using certified funds, including bank-certified checks or cashier’s checks. Payment shall be considered complete upon receipt and verification of the certified funds.
Payment in restricted currency clause
This variation applies to agreements involving restricted or regulated currencies.
Payments under this Agreement shall be made in [specific restricted currency], subject to compliance with applicable laws and regulations governing currency use. Both parties agree to obtain any necessary permissions or licenses.
Payment through escrowed digital assets clause
This variation applies to agreements involving cryptocurrency held in escrow.
Payments under this Agreement shall be made in digital assets, such as [specific cryptocurrency], and held in escrow by [specific escrow service]. The funds shall be released to the receiving party upon fulfillment of the contractual obligations.
Payment with penalty for early withdrawal clause
This variation applies to agreements discouraging early withdrawal of funds.
Payments under this Agreement shall not be withdrawn or canceled before the completion of the agreed-upon term. If the paying party withdraws early, a penalty fee of [specific percentage or amount] shall apply.
Payment with rolling balance clause
This variation applies to agreements involving a rolling payment structure.
Payments under this Agreement shall operate on a rolling balance system, where any unpaid amounts from one period are added to the next period’s payment. Interest may accrue on unpaid balances at a rate of [specific percentage] per annum.
Payment in government-backed credits clause
This variation applies to agreements allowing government credits as payment.
Payments under this Agreement may be made using government-backed credits, such as tax credits or carbon credits. The credits must be transferable and verifiable to fulfill the payment obligation.
Payment with netting agreement clause
This variation applies to agreements involving payment offsets.
Payments under this Agreement shall be netted against any amounts owed by the receiving party to the paying party. The resulting balance shall be paid to the respective party within [specific number] days.
Payment via prepaid account clause
This variation applies to agreements requiring a prepaid account.
The paying party shall fund a prepaid account with [specific amount] before the start of services under this Agreement. Payments for services rendered shall be deducted from the prepaid account until the balance is depleted.
Payment with staggered due dates clause
This variation applies to agreements with staggered payment deadlines.
Payments under this Agreement shall be due in staggered amounts on the following dates: [specific due dates]. Each payment shall be made via [specific method], and late payments will incur penalties as outlined in this Agreement.
Payment in commodities clause
This variation applies to agreements allowing payment in commodities.
Payments under this Agreement may be made in the form of commodities, such as [specific commodities, e.g., gold, oil, or agricultural products]. The quantity and quality of the commodities must meet the specifications agreed upon by both parties.
Payment with liquidation rights clause
This variation applies to agreements allowing payment liquidation options.
If the paying party is unable to fulfill payment obligations, the receiving party reserves the right to liquidate pledged assets or securities to cover the outstanding payment. Liquidation procedures shall follow the terms outlined in this Agreement.
Payment in advance with rebate clause
This variation applies to agreements incentivizing advance payments.
The paying party may pay the total amount due under this Agreement in advance to receive a rebate of [specific percentage]. The rebate shall be applied as a credit to the final payment or refunded to the paying party within [specific number] days.
Payment with escrow for dispute resolution clause
This variation applies to agreements requiring escrow to manage disputes.
Payments under this Agreement shall be deposited into an escrow account managed by [specific escrow agent]. If a dispute arises, the funds shall remain in escrow until the dispute is resolved in accordance with the dispute resolution provisions of this Agreement.
Payment upon conditional acceptance clause
This variation applies to agreements requiring conditional acceptance.
Payments under this Agreement shall be made only after the receiving party confirms conditional acceptance of goods or services. Such acceptance must be communicated in writing and include a list of any remaining conditions to be fulfilled.
Payment with holdback provision clause
This variation applies to agreements involving retention of funds.
The paying party shall withhold [specific percentage] of the total payment under this Agreement as a holdback. The holdback amount shall be released to the receiving party upon satisfactory completion of [specific conditions, e.g., warranty period or project completion].
Payment via recurring invoices clause
This variation applies to agreements involving periodic invoices.
Payments under this Agreement shall be made upon receipt of recurring invoices issued by the receiving party on a [specific frequency, e.g., monthly or quarterly] basis. Invoices must be paid within [specific number] days of issuance.
Payment with conditional penalty waiver clause
This variation applies to agreements waiving penalties under specific conditions.
Penalties for late payments under this Agreement may be waived at the sole discretion of the receiving party if the paying party provides evidence of extenuating circumstances, such as [specific reasons, e.g., natural disasters or system failures].
Payment through multi-currency accounts clause
This variation applies to agreements allowing payments in multiple currencies.
Payments under this Agreement may be made in [specific currencies]. The paying party shall bear any conversion fees or charges associated with transferring payments from their account to the receiving party.
Payment with volume discount clause
This variation applies to agreements incentivizing bulk payments.
If the paying party’s total payments under this Agreement exceed [specific threshold], the receiving party shall apply a volume discount of [specific percentage] to subsequent payments.
Payment with early termination adjustment clause
This variation applies to agreements with adjusted payments upon termination.
If this Agreement is terminated early, the paying party shall remit a prorated payment based on the services rendered or goods delivered up to the termination date. Adjustments shall be reflected in a final invoice issued by the receiving party.
Payment with regulatory compliance clause
This variation applies to agreements requiring compliance documentation.
Payments under this Agreement shall be made only after the paying party provides evidence of compliance with applicable regulatory requirements, including [specific documents, e.g., permits or certifications].
Payment with escrowed performance bond clause
This variation applies to agreements involving performance bonds.
Payments under this Agreement may be secured by an escrowed performance bond issued by [specific institution]. The bond shall remain in escrow until the receiving party confirms satisfactory fulfillment of contractual obligations.
Payment for custom deliverables clause
This variation applies to agreements involving bespoke services or goods.
Payments under this Agreement shall be contingent on the delivery of custom goods or services that meet the specifications outlined in Exhibit [specific exhibit number]. Payments shall be made within [specific number] days of approval of the deliverables.
Payment with contingency fund clause
This variation applies to agreements requiring a contingency reserve.
The paying party shall allocate a contingency fund of [specific amount] in addition to regular payments under this Agreement. The contingency fund shall be used solely for unanticipated costs and disbursed only upon mutual agreement.
Payment in tranches clause
This variation applies to agreements requiring payment in specific tranches.
Payments under this Agreement shall be divided into [specific number] tranches. Each tranche shall be released upon the completion of milestones outlined in Schedule [specific schedule number].
Payment with audit trail requirement clause
This variation applies to agreements requiring payment documentation.
The paying party shall maintain a detailed audit trail of all payments made under this Agreement, including transaction records, bank statements, and receipts. The receiving party may request access to these records during the term of the Agreement.
Payment with shared liability clause
This variation applies to agreements involving shared payment responsibilities.
Payments under this Agreement shall be shared between [specific parties]. Each party’s responsibility for the payment shall be outlined in Exhibit [specific exhibit number], and all payments must comply with the agreed terms.
Payment with escrowed retention funds clause
This variation applies to agreements retaining funds for warranty periods.
[Specific percentage] of each payment under this Agreement shall be deposited into an escrow account as retention funds. The funds shall be released to the receiving party upon the expiration of the warranty period or fulfillment of other agreed conditions.
Payment via blockchain transfer clause
This variation applies to agreements involving blockchain technology.
Payments under this Agreement may be made via blockchain transfer using [specific platform or technology]. The paying party shall provide the transaction hash as proof of payment, and the receiving party shall confirm receipt on the blockchain.
Payment with offset rights clause
This variation applies to agreements allowing payment offsets.
The paying party may offset payments under this Agreement against amounts owed to them by the receiving party under separate agreements. Any offsets must be documented and approved in writing by both parties.
Payment with inflation adjustment clause
This variation applies to agreements adjusting payments for inflation.
Payments under this Agreement shall be adjusted annually based on the Consumer Price Index (CPI) or an equivalent inflation measure. Adjustments shall be calculated and communicated to the paying party at least [specific number] days before the adjustment takes effect.
Payment with flexible due date clause
This variation applies to agreements allowing flexibility in payment schedules.
Payments under this Agreement may be made within [specific range, e.g., 15-30 days] from the issuance of the invoice. The paying party must notify the receiving party of the selected due date within [specific number] days of receiving the invoice.
Payment with staggered approval clause
This variation applies to agreements requiring multiple approvals before payment.
Payments under this Agreement shall be contingent upon approval from [specific parties or departments]. Each approval must be documented and submitted to the paying party before payment is initiated.
Payment via digital token clause
This variation applies to agreements allowing payments in digital tokens.
Payments under this Agreement may be made in digital tokens, such as [specific token name]. The paying party shall transfer tokens to the designated wallet address provided by the receiving party and ensure transaction confirmation on the blockchain.
Payment with pre-approval for additional charges clause
This variation applies to agreements involving potential additional charges.
The paying party shall pre-approve any additional charges beyond the agreed payment amount. Such charges must be detailed in a written request and acknowledged by both parties before payment is made.
Payment with capped late fees clause
This variation applies to agreements limiting late payment penalties.
Late payments under this Agreement shall incur a fee of [specific percentage or amount] per day, capped at a maximum of [specific percentage or amount]. The paying party agrees to remit all late fees along with the overdue payment.
Payment by installment with variable amounts clause
This variation applies to agreements with differing installment amounts.
Payments under this Agreement shall be made in [specific number] installments of varying amounts as outlined in Schedule [specific schedule number]. Each payment must be made on or before the due date specified for that installment.
Payment via trade credit clause
This variation applies to agreements allowing trade credit as payment.
Payments under this Agreement may be settled using trade credit arrangements. The paying party shall issue a credit note equal to the payment amount, redeemable against future purchases or services.
Payment with rolling credit limit clause
This variation applies to agreements with a credit limit that resets periodically.
The paying party shall have a rolling credit limit of [specific amount], which resets on a [specific frequency, e.g., monthly or quarterly] basis. Payments exceeding this limit must be pre-approved in writing by the receiving party.
Payment with milestone-based retention clause
This variation applies to agreements retaining a portion of payments for milestones.
A retention amount of [specific percentage] shall be withheld from each milestone payment under this Agreement. Retention funds shall be released to the receiving party upon the satisfactory completion of all milestones.
Payment via direct deposit clause
This variation applies to agreements requiring direct deposit payments.
Payments under this Agreement shall be made via direct deposit to the receiving party’s designated bank account. The paying party shall provide confirmation of the deposit within [specific number] days of payment initiation.
Payment with tiered pricing clause
This variation applies to agreements with pricing tiers based on volume.
Payments under this Agreement shall follow a tiered pricing structure: [specific price] per unit for orders up to [specific quantity], and [specific price] per unit for orders exceeding [specific quantity]. Payment shall reflect the applicable tier at the time of billing.
Payment with periodic adjustment for cost increases clause
This variation applies to agreements allowing cost-based adjustments.
Payments under this Agreement shall be adjusted periodically to reflect increases in material or operational costs. Adjustments shall be calculated based on documented cost changes and communicated to the paying party at least [specific number] days in advance.
Payment with allocation to multiple projects clause
This variation applies to agreements dividing payments across projects.
Payments under this Agreement shall be allocated proportionally to [specific projects or deliverables]. The allocation percentages shall be outlined in Schedule [specific schedule number] and agreed upon by both parties.
Payment with time-limited surcharge clause
This variation applies to agreements involving temporary surcharges.
Payments under this Agreement shall include a temporary surcharge of [specific amount or percentage] to cover [specific reason, e.g., increased operational costs]. The surcharge shall expire on [specific date], and payments after that date shall exclude this charge.
Payment with third-party audit clause
This variation applies to agreements requiring third-party verification.
Payments under this Agreement may be subject to third-party audit to ensure accuracy and compliance with contractual terms. The audit findings shall be binding, and any discrepancies must be rectified within [specific number] days.
Payment with penalty for under-delivery clause
This variation applies to agreements penalizing incomplete performance.
Payments under this Agreement shall be reduced by [specific percentage or amount] for any under-delivery of goods or services, as determined by the receiving party’s assessment. The adjusted payment amount shall be final.
Payment in equal quarterly installments clause
This variation applies to agreements requiring quarterly payments.
Payments under this Agreement shall be made in equal installments on a quarterly basis. Each installment shall be due on the [specific day, e.g., 15th] of the first month of each quarter and must be remitted via [specific method, e.g., wire transfer].
Payment with escrowed contingency fund clause
This variation applies to agreements setting aside contingency funds.
A contingency fund equal to [specific percentage or amount] of the total payment under this Agreement shall be deposited into an escrow account. The funds shall be used exclusively for unforeseen expenses and released only upon mutual agreement.
Payment with delayed release for quality assurance clause
This variation applies to agreements requiring quality verification before payment.
Payments under this Agreement shall be held for [specific number] days after the delivery of goods or services to allow for quality assurance checks. If no issues are reported within the holding period, the payment shall be released in full.
Payment with dynamic pricing adjustment clause
This variation applies to agreements allowing real-time pricing changes.
Payments under this Agreement shall be adjusted dynamically based on market fluctuations for [specific commodities, services, etc.]. Pricing adjustments will be calculated at the time of payment using [specific index or reference point].
Payment via pre-approved vendor credit clause
This variation applies to agreements involving pre-approved vendor credit.
Payments under this Agreement may be settled using vendor credit accounts pre-approved by both parties. The credit limit and repayment terms must align with the vendor’s standard policies.
Payment with variable installment schedule clause
This variation applies to agreements allowing customized installment timelines.
Payments under this Agreement shall be made in installments, with the amount and timing of each installment mutually agreed upon before the due date. A detailed schedule will be appended to this Agreement.
Payment with conditional early termination rebate clause
This variation applies to agreements incentivizing early termination.
If the paying party terminates this Agreement early under approved conditions, a rebate of [specific percentage or amount] shall be issued for services or goods not yet delivered. The rebate will be processed within [specific number] days of termination.
Payment through purchase order system clause
This variation applies to agreements requiring purchase orders for payment.
Payments under this Agreement shall be initiated only upon receipt of an approved purchase order. The purchase order must reference this Agreement and specify the amount, terms, and deliverables.
Payment with overage allowance clause
This variation applies to agreements permitting payment flexibility for overages.
Payments under this Agreement may include up to [specific percentage or amount] in allowable overages without prior approval. Any overages exceeding this limit must be justified and pre-approved in writing.
Payment through deferred invoicing clause
This variation applies to agreements allowing delayed invoicing.
The receiving party may issue invoices up to [specific number] days after the completion of services or delivery of goods. Payments shall be due within [specific number] days of the invoice date.
Payment in installments with review checkpoints clause
This variation applies to agreements linking payments to performance reviews.
Payments under this Agreement shall be made in installments, with each payment contingent on the successful completion of review checkpoints. The checkpoints must be verified and approved by both parties before payment.
Payment through automated clearinghouse (ACH) clause
This variation applies to agreements requiring ACH payments.
Payments under this Agreement shall be processed through the Automated Clearinghouse (ACH) system. The paying party must provide accurate bank details and authorize ACH transactions in writing.
Payment with shared milestone-based escrow clause
This variation applies to agreements involving shared escrow for milestones.
Payments under this Agreement shall be deposited into a shared escrow account and released incrementally upon completion of agreed milestones. Milestone completion must be certified by a mutually agreed third party.
Payment in form of redeemable vouchers clause
This variation applies to agreements involving vouchers as payment.
Payments under this Agreement may be made using redeemable vouchers issued by the paying party. The vouchers must have a value equivalent to the payment amount and be redeemable at locations approved by the receiving party.
Payment with penalty for misrepresentation clause
This variation applies to agreements addressing fraudulent or inaccurate information.
If the paying party is found to have misrepresented information related to payments under this Agreement, a penalty of [specific percentage or amount] shall apply, and the receiving party may seek additional remedies.
Payment for incremental deliverables clause
This variation applies to agreements linked to partial deliverables.
Payments under this Agreement shall be made incrementally upon the delivery of partial goods or services. Each incremental payment shall correspond to the percentage of work completed, as outlined in the attached schedule.
Payment with delayed escrow release for compliance clause
This variation applies to agreements requiring compliance verification.
Payments under this Agreement shall be held in escrow until compliance with applicable regulations is verified. Verification must be completed within [specific number] days, after which the funds will be released to the receiving party.
Payment via offset against receivables clause
This variation applies to agreements involving offset payments.
Payments under this Agreement may be offset against receivables owed by the receiving party to the paying party. Any remaining balance must be paid via [specific method] within [specific number] days.
Payment with contingent volume-based pricing clause
This variation applies to agreements adjusting payments based on volume.
Payments under this Agreement shall be contingent on the volume of goods or services delivered. Higher volumes will qualify for tiered discounts, as outlined in Schedule [specific schedule number].
Payment with rolling credit balance clause
This variation applies to agreements with cumulative credit limits.
Payments under this Agreement shall utilize a rolling credit balance system, where unused credit from one period rolls over to subsequent periods. The total credit balance may not exceed [specific limit] at any time.
Payment with capped liability for overpayments clause
This variation applies to agreements limiting liability for errors.
If an overpayment occurs under this Agreement, the receiving party shall return the excess amount within [specific number] days. Liability for overpayments shall be capped at [specific percentage or amount].
Payment with service-level guarantee clause
This variation applies to agreements tied to performance guarantees.
Payments under this Agreement shall be contingent upon the receiving party meeting specific service-level guarantees. If guarantees are not met, the paying party may reduce the payment amount proportionally.
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.