Outstanding amounts clause: Copy, customize, and use instantly
Introduction
An outstanding amounts clause specifies the terms under which amounts owed under a contract must be paid, including when they become due, how interest will be applied to overdue amounts, and any penalties or actions taken if the amounts remain unpaid. This clause ensures that the creditor has a clear understanding of when payments should be made, and it provides remedies in case of non-payment or delayed payment.
Below are templates for outstanding amounts clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard outstanding amounts clause
This version outlines basic terms for overdue payments.
Any outstanding amounts owed under this Agreement must be paid in full within [X] days from the invoice date. If any amount remains unpaid after the due date, interest will accrue on the overdue balance at a rate of [X]% per annum, compounded monthly.
Outstanding amounts clause with provision for interest on overdue balances
This version applies interest on overdue balances.
All outstanding amounts not paid by the due date will accrue interest at a rate of [X]% per annum, calculated daily from the due date until the full balance is paid. The interest will be added to the outstanding balance and will continue to accrue until paid.
Outstanding amounts clause with provision for collection costs
This version includes collection costs.
In the event that any outstanding amounts remain unpaid for [X] days, the debtor agrees to reimburse [Party A] for any costs incurred in collecting the overdue amounts, including but not limited to legal fees, collection agency fees, and court costs, in addition to any accrued interest.
Outstanding amounts clause with provision for escalation of interest
This version escalates interest over time.
If any amounts remain outstanding for more than [X] days after the due date, the interest rate on the overdue balance will escalate from [X]% to [Y]% per annum. The new interest rate will apply to the overdue balance from the date the escalation takes effect.
Outstanding amounts clause with provision for payment plan
This version allows for a payment plan.
If any amount remains outstanding for more than [X] days, the debtor may request a payment plan. The payment plan will be subject to [Party A]’s approval and may include extended payment terms. Interest will continue to accrue on the overdue balance during the payment plan period.
Outstanding amounts clause with provision for immediate payment demand
This version allows immediate payment demand.
If any outstanding amount remains unpaid after the due date, [Party A] may demand immediate payment of the entire outstanding balance, including any accrued interest and fees. The debtor will have [X] days to settle the balance after receiving such demand.
Outstanding amounts clause with provision for a late fee
This version includes a late fee.
If any outstanding amount remains unpaid for more than [X] days from the due date, a late fee of [X]% of the overdue amount will be applied to the outstanding balance, in addition to any interest accrued on the overdue amount.
Outstanding amounts clause with provision for suspension of services
This version suspends services in case of outstanding amounts.
If any amount remains outstanding for more than [X] days, [Party A] reserves the right to suspend the delivery of services or the provision of goods until the overdue balance is paid in full.
Outstanding amounts clause with provision for renegotiation of payment terms
This version allows renegotiation of payment terms.
In the event of outstanding amounts, the debtor may request renegotiation of the payment terms. Any new terms must be mutually agreed upon in writing and will be subject to a new payment schedule, with potential interest charges applied to the outstanding balance.
Outstanding amounts clause with provision for a fixed penalty fee
This version includes a fixed penalty fee.
If any amount remains unpaid for more than [X] days, [Party B] agrees to pay a fixed penalty fee of [X] dollars for each month the payment remains overdue, in addition to any accrued interest on the outstanding balance.
Outstanding amounts clause with provision for accelerated payment due
This version accelerates payment due after delays.
If payment is not made by the agreed due date, the full outstanding amount becomes immediately due and payable. Any interest that has accrued will also be added to the total amount owed.
Outstanding amounts clause with provision for debt recovery
This version allows for debt recovery actions.
If the outstanding balance remains unpaid for more than [X] days, [Party A] may initiate debt recovery actions, including referral to a collection agency, legal proceedings, or both, and all related costs will be borne by [Party B].
Outstanding amounts clause with provision for minimum monthly payments
This version sets a minimum monthly payment.
If the outstanding amount is not paid in full by the due date, [Party B] agrees to make minimum monthly payments of [X] dollars until the full balance, including any accrued interest, is paid off.
Outstanding amounts clause with provision for reducing interest after partial payment
This version allows for reduced interest after partial payment.
If [Party B] makes a partial payment, the interest rate will be reduced to [X]% per annum on the remaining outstanding balance, provided the partial payment is made within [X] days of the original due date.
Outstanding amounts clause with provision for adjustment of payment terms after default
This version adjusts payment terms after default.
In the event of a default due to outstanding amounts, the Parties agree to adjust the payment terms, including potential payment extensions, a revised payment schedule, and a possible reduction in interest rates, based on [Party B]’s financial condition.
Outstanding amounts clause with provision for notification of overdue payment
This version requires notification of overdue payment.
If any amount remains unpaid for more than [X] days, [Party A] will notify [Party B] in writing of the overdue balance. This notification will include a request for payment, as well as a reminder of any applicable interest or penalties.
Outstanding amounts clause with provision for handling disputes on overdue amounts
This version addresses disputes regarding overdue amounts.
If [Party B] disputes the outstanding amount, the Parties agree to meet and resolve the dispute within [X] days. Interest will continue to accrue on the disputed amount during this period unless the dispute results in an agreed reduction of the total balance.
Outstanding amounts clause with provision for a payment extension request
This version allows for a payment extension request.
If payment is delayed, [Party B] may request an extension for up to [X] days. The request must be made in writing before the due date. Any extended period will incur interest at the rate of [X]% per annum, calculated from the original due date.
Outstanding amounts clause with provision for interest rate increase after specified delay
This version increases the interest rate after a specified delay.
If any outstanding amounts are not paid within [X] days, the interest rate on the overdue balance will increase by [X] percentage points per annum. This adjusted interest rate will apply to the entire overdue balance.
Outstanding amounts clause with provision for payment deferral
This version allows for payment deferral.
In the event of a financial hardship, [Party B] may request a deferral of the outstanding balance for up to [X] months. The deferral may include adjustments to the payment terms, and interest will continue to accrue during the deferral period.
Outstanding amounts clause with provision for additional payment obligations after delay
This version includes additional payment obligations after a delay.
If any amount remains outstanding for more than [X] days, [Party B] agrees to provide additional security or guarantees in the form of [specific payment obligations] to cover the risk of delayed payments.
Outstanding amounts clause with provision for alternative settlement of overdue amounts
This version allows for alternative settlement methods.
If the payment remains outstanding for more than [X] days, [Party B] may settle the overdue amount by providing equivalent value in goods or services, subject to mutual agreement, until the outstanding balance is paid in full.
Outstanding amounts clause with provision for partial forgiveness of overdue balance
This version offers partial forgiveness.
If [Party B] settles [X]% of the outstanding balance within [X] days, [Party A] will forgive [Y]% of the total overdue amount. This partial forgiveness will apply to both principal and accrued interest, provided the partial payment is received in full.
Outstanding amounts clause with provision for interest on past-due balances with a ceiling
This version sets a ceiling on interest.
Interest will accrue on any outstanding amount at a rate of [X]% per annum. However, the total interest charged will not exceed [Y]% of the original overdue balance, regardless of the length of time the balance remains unpaid.
Outstanding amounts clause with provision for automatic payment reminder
This version includes an automatic reminder.
If any outstanding amount remains unpaid for more than [X] days, an automatic reminder will be sent to [Party B] regarding the overdue balance. The reminder will include details of the amount due and the applicable interest rate.
Outstanding amounts clause with provision for review of payment terms after delays
This version allows review of terms after delays.
If payments are delayed for more than [X] days, the Parties agree to review the payment terms, including potential adjustments to the schedule or interest rates, and agree to revised terms based on the circumstances.
Outstanding amounts clause with provision for holding the contract in abeyance
This version allows the contract to be held in abeyance.
If payment is delayed for more than [X] days, [Party A] has the right to hold the performance of this Agreement in abeyance, including the suspension of all related duties and obligations, until payment is received.
Outstanding amounts clause with provision for interest on taxes due
This version applies to overdue taxes.
Any overdue taxes under this Agreement will accrue interest at a rate of [X]% per annum from the due date until paid, with interest compounding monthly, in addition to any penalties imposed by tax authorities.
Outstanding amounts clause with provision for payment of legal costs due to non-payment
This version applies to legal costs.
In the event that any outstanding amount remains unpaid for more than [X] days, [Party B] agrees to pay all reasonable legal costs, including attorney fees and court costs, incurred by [Party A] in seeking payment.
Outstanding amounts clause with provision for payment in installments
This version allows payment in installments.
If any amount remains outstanding, [Party B] may request to pay the balance in [X] equal installments. Interest at a rate of [X]% per annum will be applied to any unpaid amounts during the installment period.
Outstanding amounts clause with provision for debt restructuring
This version allows debt restructuring.
If payment is delayed for more than [X] days, [Party B] may request a debt restructuring agreement, which may include revised payment terms or a reduction in the interest rate, subject to [Party A]’s approval.
Outstanding amounts clause with provision for withdrawal of services
This version includes withdrawal of services.
If payment is not made within [X] days of the due date, [Party A] reserves the right to withdraw all services under this Agreement until the overdue balance, including accrued interest, is paid in full.
Outstanding amounts clause with provision for delayed payment fee
This version includes a delayed payment fee.
In the event that payment is delayed by more than [X] days, a fee of [X] dollars will be charged for each additional [X] days the payment is overdue, in addition to the interest that accrues on the outstanding amount.
Outstanding amounts clause with provision for early payment bonuses
This version includes early payment bonuses.
If payment is made before the due date, [Party A] agrees to provide [Party B] with a bonus in the form of a [X]% reduction in the outstanding balance. This bonus will be applied to the total amount owed.
Outstanding amounts clause with provision for full settlement in case of payment default
This version requires full settlement in case of default.
In the event of payment default, [Party A] reserves the right to require full settlement of any outstanding amounts immediately, including any accrued interest and applicable fees.
Outstanding amounts clause with provision for adjustments after market conditions change
This version allows for adjustments after market conditions change.
If payment is delayed for more than [X] days and market conditions change significantly, [Party A] and [Party B] agree to renegotiate the terms of payment, including potential adjustments to the outstanding balance based on market trends.
Outstanding amounts clause with provision for payment prioritization
This version sets payment prioritization.
If multiple amounts are outstanding, [Party B] agrees to prioritize the payment of this Agreement’s outstanding balance over other obligations. Payments will be allocated first to the overdue amounts under this Agreement until fully settled.
Outstanding amounts clause with provision for charges on overdue fixed fees
This version applies to overdue fixed fees.
If any fixed fees due under this Agreement remain unpaid for more than [X] days, [Party B] agrees to pay interest at a rate of [X]% per annum on the overdue amount, starting from the due date until payment is received in full.
Outstanding amounts clause with provision for adjustments due to cash flow constraints
This version applies to cash flow constraints.
If [Party B] experiences cash flow constraints, payment of the outstanding balance may be delayed for a period of [X] days, with the mutual agreement of both Parties. During this period, no additional interest will accrue on the overdue balance.
Outstanding amounts clause with provision for increased interest for repeat delays
This version increases interest for repeat delays.
If payment is delayed more than once under this Agreement, the interest rate applied to any future overdue amounts will increase by [X]% per annum, compounded monthly, as a penalty for repeated delays.
Outstanding amounts clause with provision for credit report notification
This version applies to credit reporting.
If payment is delayed for more than [X] days, [Party A] reserves the right to report the overdue amount to [specified credit reporting agency], which may impact [Party B]’s credit rating.
Outstanding amounts clause with provision for early notification of overdue payments
This version includes early notification.
If any payment is overdue for more than [X] days, [Party A] will notify [Party B] of the overdue amount in writing. The notice will include a request for immediate payment and any interest that has accrued on the balance.
Outstanding amounts clause with provision for alternative dispute resolution
This version includes alternative dispute resolution.
If there is a dispute regarding the outstanding amount, the Parties agree to submit the matter to alternative dispute resolution, including mediation or arbitration, before taking any legal action. Interest will continue to accrue on the overdue amount during this process.
Outstanding amounts clause with provision for suspension of credit terms
This version suspends credit terms after delay.
If any amount remains outstanding for more than [X] days, [Party A] reserves the right to suspend any future credit terms under this Agreement, including payment deferrals or extended payment options, until the overdue balance is cleared.
Outstanding amounts clause with provision for third-party collection
This version applies third-party collection efforts.
If any amount remains outstanding for more than [X] days, [Party A] reserves the right to refer the outstanding balance to a third-party collection agency. Any fees or charges incurred by [Party A] for collection efforts will be added to the overdue amount.
Outstanding amounts clause with provision for suspension of future contracts
This version suspends future contracts due to overdue amounts.
If any outstanding amounts remain unpaid for more than [X] days, [Party B] agrees that [Party A] may suspend any future agreements or contracts until the overdue balance, including interest and fees, is paid in full.
Outstanding amounts clause with provision for partial payments acceptance
This version allows partial payments with specific terms.
[Party A] may accept partial payments on the overdue balance. However, interest at a rate of [X]% per annum will continue to accrue on the remaining unpaid balance until the total amount is fully settled.
Outstanding amounts clause with provision for lump sum settlement
This version allows for a lump sum settlement.
If any outstanding amounts remain unpaid for more than [X] days, [Party B] may settle the overdue balance in a lump sum, with a discount of [X]% applied to the total amount if payment is made in full within [X] days of receiving the overdue notice.
Outstanding amounts clause with provision for a payment guarantee
This version includes a payment guarantee.
If payment is delayed for more than [X] days, [Party B] will provide a payment guarantee from a financial institution or other third party, ensuring full settlement of the overdue balance.
Outstanding amounts clause with provision for re-negotiation of overdue payments
This version allows for renegotiation of overdue payments.
If payments are overdue for more than [X] days, the Parties agree to meet and renegotiate the payment terms, including potentially extending the due date, adjusting the interest rate, or restructuring the payment schedule.
Outstanding amounts clause with provision for increased costs after delay
This version increases costs after delay.
If payment is delayed beyond the original due date, [Party B] agrees to pay an additional administrative fee of [X] dollars for each month the payment is overdue, in addition to any interest that accrues.
Outstanding amounts clause with provision for suspension of rights under the agreement
This version suspends rights under the agreement due to overdue payments.
If payment remains outstanding for more than [X] days, [Party A] reserves the right to suspend any rights or privileges granted under this Agreement, including access to services or products, until the overdue balance is paid in full.
Outstanding amounts clause with provision for additional payment terms in case of delay
This version introduces additional payment terms for delays.
If payment is delayed, [Party A] and [Party B] will agree to new payment terms, including a new payment schedule, adjustments to interest rates, and an extended period for payment to allow [Party B] to settle the overdue balance.
Outstanding amounts clause with provision for automatic escalation of interest rate
This version automatically escalates the interest rate.
If payment is overdue for more than [X] days, the interest rate on the overdue amount will automatically escalate to [Y]% per annum, compounded monthly, and apply until the outstanding balance is paid.
Outstanding amounts clause with provision for joint liability on overdue amounts
This version applies joint liability.
If the outstanding amount is not paid within [X] days, both Parties (or their designated representatives) will be jointly liable for the overdue balance, and both will be responsible for payment, including interest and fees.
Outstanding amounts clause with provision for delay penalty applied to multiple overdue accounts
This version applies to multiple overdue accounts.
If there are multiple overdue amounts under this Agreement, a penalty of [X]% of the total overdue balance will be applied to the combined overdue accounts. This penalty will be added to each individual overdue amount.
Outstanding amounts clause with provision for temporary suspension of obligations
This version suspends obligations temporarily.
If [Party B] fails to make payment by the due date, [Party A] reserves the right to temporarily suspend its obligations under this Agreement, including delivery, performance, or other duties, until the overdue balance is paid in full.
Outstanding amounts clause with provision for waiver of interest on early payment
This version waives interest on early payment.
If [Party B] settles the overdue balance in full within [X] days of receiving notice of the overdue payment, any interest that has accrued on the balance will be waived.
Outstanding amounts clause with provision for periodic reminders
This version includes periodic reminders.
If payment is not received by the original due date, [Party A] will send periodic reminders to [Party B] every [X] days. Each reminder will include the overdue amount and any interest or penalties incurred up to that point.
Outstanding amounts clause with provision for debt cancellation after a period
This version allows for debt cancellation after a period.
If the outstanding balance remains unpaid for more than [X] months, [Party A] may choose to cancel the debt, fully or partially, subject to mutual agreement and any applicable legal or tax consequences.
Outstanding amounts clause with provision for offset of future payments
This version allows offsetting future payments.
If any amount remains outstanding, [Party A] may offset the overdue balance against any future payments due from [Party B] under this Agreement, including any interest accrued on the overdue amount.
Outstanding amounts clause with provision for force majeure exception on overdue amounts
This version applies to force majeure situations.
If the overdue balance is caused by a force majeure event, such as a natural disaster or government action, both Parties agree to negotiate a reasonable extension of the payment due date without applying penalties or interest during the force majeure period.
Outstanding amounts clause with provision for payment under dispute
This version addresses payments under dispute.
If an outstanding balance is under dispute, [Party B] agrees to pay the undisputed portion of the amount owed within [X] days. The disputed portion will be resolved through dispute resolution, and interest will accrue only on the undisputed portion until the matter is settled.
Outstanding amounts clause with provision for recurring payments on overdue amounts
This version applies recurring payments on overdue amounts.
If payment is delayed, [Party B] agrees to make recurring payments of at least [X] dollars per [week/month], with the remaining overdue balance being paid off in full within [X] months.
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.