Payment installment clause: Copy, customize, and use instantly
Introduction
A payment installment clause outlines how payments will be made over time for goods or services, specifying the amount, frequency, and conditions of each installment. This clause helps set expectations for both parties and ensures that there is a clear understanding of the payment schedule, along with consequences for missed or late payments.
Below are templates for payment installment clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard installment payment clause
This variation applies to standard installment payments.
The Buyer agrees to pay the total purchase price of [total amount] in [number of installments, e.g., 3] equal installments of [installment amount], due on the [specific dates or frequency, e.g., first day of each month]. Each payment will be applied to the total balance due under this Agreement until the full amount is paid.
Installment payment with due dates
This variation applies to installment payments with specific due dates.
Payments will be made in [number of installments, e.g., 4] equal installments, with each installment due on the [specific due dates, e.g., 1st of January, March, May, and July]. The total balance of [total amount] is due in full by the final due date.
Installment payment for a loan agreement
This variation applies to installment payments for a loan agreement.
The Borrower agrees to repay the loan amount of [loan amount] in [number of installments, e.g., 12] equal monthly installments of [installment amount], starting on [start date]. Each installment will be due on the [specific date, e.g., 15th day] of each month until the loan is paid in full.
Installment payment for a deferred payment plan
This variation applies to deferred payment plans.
The Buyer may defer payment of the total price of [total amount] in [number of installments, e.g., 6] monthly installments, with the first installment due on [start date]. Each subsequent installment will be due on the [specific day, e.g., 15th] of each month until the balance is fully paid.
Installment payment for a deposit plus installments
This variation applies to agreements where an initial deposit is followed by installments.
The Buyer will pay an initial deposit of [deposit amount] on the execution of this Agreement. The remaining balance of [remaining amount] will be paid in [number of installments, e.g., 5] equal monthly installments of [installment amount], with the first payment due on [start date] and each subsequent payment due on the [specific date, e.g., 15th of each month].
Installment payment for services with milestone payments
This variation applies to installment payments for services tied to milestones.
The total payment of [total amount] for services rendered under this Agreement will be made in [number of installments, e.g., 3] installments. The first installment of [installment amount] is due upon execution of this Agreement, the second installment of [installment amount] is due upon completion of [specific milestone], and the final installment of [installment amount] is due upon completion of [final milestone].
Installment payment with late payment penalty
This variation applies when late payments incur a penalty.
The Buyer agrees to pay the total amount of [total amount] in [number of installments, e.g., 4] equal installments. If any installment is not paid within [number of days, e.g., 10 days] of the due date, a late fee of [late fee amount or percentage, e.g., 2%] will be charged on the overdue installment, accruing until the full payment is received.
Installment payment with interest
This variation applies when installments include an interest component.
The total purchase price of [total amount] will be paid in [number of installments, e.g., 6] monthly installments of [installment amount], with interest at a rate of [interest rate, e.g., 5%] per annum. Interest will be calculated on the outstanding balance and added to each installment.
Installment payment with an option for early payment
This variation applies when there is an option for early payment.
The Buyer may choose to pay off the full remaining balance of [remaining amount] at any time before the final installment due date. If the Buyer elects to pay early, the Buyer will not be subject to any additional interest charges or penalties, and the remaining balance will be due within [specific number of days, e.g., 5 days] from the decision to pay early.
Installment payment with adjustment clause
This variation applies when installments can be adjusted.
Payments will be made in [number of installments, e.g., 4] equal installments of [installment amount]. If any adjustment to the total purchase price is required due to changes in the scope of the Agreement, the installment amounts may be recalculated, and the Buyer will be notified of the revised payment amounts.
Installment payment for a subscription service
This variation applies to subscription service payments.
The Subscriber agrees to pay the subscription fee of [subscription fee] in [number of installments, e.g., 12] equal monthly installments of [installment amount], with the first payment due on [start date]. Each subsequent installment will be due on the [specific day, e.g., 1st of each month] until the subscription period ends or is canceled.
Installment payment for product purchases with down payment
This variation applies to product purchases with a down payment and installments.
The Buyer agrees to pay a down payment of [down payment amount] upon execution of this Agreement. The remaining balance of [remaining balance] will be paid in [number of installments, e.g., 6] equal monthly installments of [installment amount], with the first payment due on [start date]. Subsequent payments will be due on the [specific day, e.g., 15th of each month].
Installment payment for large asset purchases
This variation applies to large asset purchases with installment payments.
The Buyer agrees to pay for the purchased asset valued at [asset value] in [number of installments, e.g., 5] equal installments of [installment amount]. The first installment is due on [due date], with each subsequent installment due on the [specific day, e.g., 1st] of each month.
Installment payment with balloon payment
This variation applies when the final installment is a balloon payment.
The total amount due under this Agreement is [total amount], which will be paid in [number of installments, e.g., 12] monthly installments of [installment amount]. The final installment, due on [final due date], will be a balloon payment of [balloon payment amount], which will be the remaining balance after all previous installments have been paid.
Installment payment for a purchase agreement with grace period
This variation applies when there is a grace period for payments.
Payments for the total amount of [total amount] will be made in [number of installments, e.g., 4] equal installments of [installment amount]. If any installment is not paid within [grace period, e.g., 5 days] of the due date, a late fee of [late fee amount, e.g., 2%] will apply.
Installment payment with an automatic payment option
This variation applies when payments are automatically debited from an account.
The Buyer agrees to make installment payments for the total amount of [total amount] in [number of installments, e.g., 6] equal monthly installments of [installment amount]. Payments will be automatically debited from the Buyer's bank account on the [specific day, e.g., 1st] of each month, starting on [start date].
Installment payment for a service agreement with upfront fee
This variation applies to service agreements with an upfront fee.
The Client agrees to pay an upfront fee of [upfront fee amount] upon execution of this Agreement. The remaining balance of [remaining balance] will be paid in [number of installments, e.g., 3] equal installments, with the first installment due on [start date]. Each subsequent installment will be due on the [specific day, e.g., 1st] of each month.
Installment payment for rental agreement with annual payments
This variation applies to rental agreements with annual payments split into installments.
The total annual rent of [annual rent amount] will be paid in [number of installments, e.g., 4] equal quarterly installments of [installment amount], with the first installment due on [start date]. Subsequent installments will be due on the [specific day, e.g., 1st] of each quarter.
Installment payment for equipment leasing
This variation applies to equipment leasing agreements.
The Lessee agrees to pay the total leasing fee of [total lease amount] in [number of installments, e.g., 12] monthly installments of [installment amount]. Payments will be due on the [specific day, e.g., 15th] of each month, with the first installment due on [start date].
Installment payment for home improvement contracts
This variation applies to home improvement contracts.
The Client agrees to pay the total amount for home improvements of [total amount] in [number of installments, e.g., 5] equal monthly installments of [installment amount], with the first installment due upon the start of the project. Each subsequent installment will be due on the [specific day, e.g., 1st] of each month until the balance is paid.
Installment payment for vehicle purchase
This variation applies to a vehicle purchase agreement.
The Buyer agrees to pay the total purchase price of [total amount] for the vehicle in [number of installments, e.g., 12] monthly installments of [installment amount], starting on [start date]. The installments will be due on the [specific day, e.g., 15th] of each month until the full balance is paid.
Installment payment for renovation projects
This variation applies to renovation project payments.
The total cost for the renovation project is [total amount], which will be paid in [number of installments, e.g., 4] equal installments of [installment amount]. The first payment is due on [start date], with subsequent payments due on the [specific date, e.g., 1st of each month] until the balance is paid in full.
Installment payment for subscription-based products
This variation applies to subscription-based product payments.
The Subscriber agrees to pay for the subscription service of [total amount] in [number of installments, e.g., 6] equal installments of [installment amount]. Payments will be due on the [specific date, e.g., 1st] of each month, beginning on [start date].
Installment payment for services rendered in multiple phases
This variation applies when services are delivered in multiple phases with installment payments.
The Client agrees to pay [total amount] for services rendered in [number of phases, e.g., 3] phases. Each phase will be invoiced with a payment of [installment amount] due at the completion of each phase. The first payment will be due on [start date], with subsequent payments due upon completion of each phase.
Installment payment for construction and engineering projects
This variation applies to construction and engineering project payments.
Payments for the construction and engineering project will be made in [number of installments, e.g., 5] equal installments of [installment amount]. The first installment is due upon the execution of this Agreement, and the remaining installments will be due on the [specific day, e.g., 1st of each month], based on project milestones as specified.
Installment payment for intellectual property purchase
This variation applies to the purchase of intellectual property.
The Buyer agrees to pay for the intellectual property of [total amount] in [number of installments, e.g., 4] equal installments of [installment amount]. The first payment is due on [start date], with subsequent payments due on the [specific day, e.g., 15th] of each month.
Installment payment for service contract with performance-based payments
This variation applies to a service contract where payments are based on performance.
The service contract is valued at [total amount], which will be paid in [number of installments, e.g., 4] equal installments of [installment amount]. Payments will be made upon the completion of each milestone, with the first installment due upon the start of the project and each subsequent payment due upon the completion of the respective milestone.
Installment payment for education or training services
This variation applies to education or training services agreements.
The total cost of [education/training program] is [total amount], which will be paid in [number of installments, e.g., 3] equal installments of [installment amount]. The first installment is due on [start date], with each subsequent installment due on the [specific day, e.g., 1st of each month].
Installment payment for subscription-based software
This variation applies to subscription-based software payments.
The Subscriber agrees to pay [total subscription cost] in [number of installments, e.g., 12] monthly installments of [installment amount]. Each installment will be due on the [specific day, e.g., 1st] of each month, starting on [start date]. If payment is not received by the due date, a late fee of [late fee amount, e.g., $50] will apply.
Installment payment for home appliance purchases
This variation applies to home appliance purchases.
The Buyer agrees to pay the total amount of [total amount] for the home appliance in [number of installments, e.g., 6] equal monthly installments of [installment amount]. The first installment will be due on [start date], with subsequent payments due on the [specific day, e.g., 1st of each month].
Installment payment for event planning services
This variation applies to event planning services.
The total fee for event planning services is [total amount], which will be paid in [number of installments, e.g., 3] equal installments of [installment amount]. The first payment will be due on [start date], with subsequent installments due on the [specific date, e.g., 15th] of each month.
Installment payment for ongoing maintenance agreements
This variation applies to maintenance agreements.
The Client agrees to pay for ongoing maintenance services at a rate of [monthly/quarterly amount] in [number of installments, e.g., 12] equal installments. The first installment is due on [start date], with each subsequent installment due on the [specific day, e.g., 1st of each month].
Installment payment for software licenses
This variation applies to software licensing agreements.
The total license fee for the software is [total amount], which will be paid in [number of installments, e.g., 4] equal installments of [installment amount]. Payments will be due on the [specific day, e.g., 1st] of each quarter, starting on [start date].
Installment payment for professional services
This variation applies to professional services.
The total fee for professional services is [total amount], payable in [number of installments, e.g., 5] equal installments of [installment amount]. The first installment is due upon execution of this Agreement, and each subsequent installment is due on the [specific day, e.g., 15th] of each month.
Installment payment for equipment leasing
This variation applies to equipment leasing agreements.
The Lessee agrees to pay the total lease amount of [total amount] in [number of installments, e.g., 12] equal monthly installments of [installment amount]. The first installment is due on [start date], with each subsequent installment due on the [specific date, e.g., 1st of each month].
Installment payment for a construction loan
This variation applies to construction loans with installment payments.
The Borrower agrees to repay the construction loan of [loan amount] in [number of installments, e.g., 6] equal monthly installments of [installment amount]. Each installment will be due on the [specific day, e.g., 1st] of each month, beginning on [start date].
Installment payment for franchise fees
This variation applies to franchise agreements.
The Franchisee agrees to pay the franchise fees in [number of installments, e.g., 4] equal installments of [installment amount]. The first payment is due upon signing of this Agreement, with the remaining payments due on the [specific date, e.g., 15th] of each month.
Installment payment for services with milestone payments
This variation applies when services are paid based on milestones.
The Client agrees to pay for services rendered under this Agreement in [number of installments, e.g., 3] equal installments. Payments will be due upon completion of key milestones, with the first installment due upon signing of this Agreement, and the subsequent installments due upon completion of [specific milestones].
Installment payment for tuition fees
This variation applies to tuition fees for educational programs.
The total tuition fee for the program is [total amount], to be paid in [number of installments, e.g., 5] equal installments of [installment amount]. The first installment is due on [start date], with each subsequent installment due on the [specific date, e.g., 1st] of each month.
Installment payment for property rental
This variation applies to property rental agreements with installment payments.
The Tenant agrees to pay the total rental amount of [total rent amount] in [number of installments, e.g., 12] equal monthly installments of [installment amount]. The first installment is due on [start date], with subsequent payments due on the [specific day, e.g., 1st of each month].
Installment payment for software implementation services
This variation applies to software implementation services.
The total fee for software implementation services is [total amount], which will be paid in [number of installments, e.g., 4] equal installments of [installment amount]. Payments will be made upon the completion of each phase of implementation, with the first installment due upon commencement of services.
Installment payment for asset purchase
This variation applies to installment payments for asset purchases.
The Buyer agrees to pay for the asset in [number of installments, e.g., 5] equal payments of [installment amount]. The first payment is due on [start date], and the remaining installments will be due on the [specific day, e.g., 15th] of each month.
Installment payment for marketing services
This variation applies to installment payments for marketing services.
The Client agrees to pay the total fee for marketing services of [total amount] in [number of installments, e.g., 6] equal monthly installments of [installment amount]. The first installment is due on [start date], with each subsequent installment due on the [specific date, e.g., 1st] of each month.
Installment payment for business expansion costs
This variation applies to installment payments for business expansion costs.
The total cost for the business expansion is [total amount], to be paid in [number of installments, e.g., 3] equal installments of [installment amount]. The first payment is due on [start date], with subsequent payments due on the [specific date, e.g., 1st] of each month.
Installment payment for a vehicle lease agreement
This variation applies to vehicle lease agreements.
The Lessee agrees to lease the vehicle for a total of [total lease amount] in [number of installments, e.g., 12] monthly installments of [installment amount]. The first payment is due on [start date], with the remaining payments due on the [specific date, e.g., 15th] of each month.
Installment payment for membership fees
This variation applies to membership agreements.
The Member agrees to pay the total membership fee of [total amount] in [number of installments, e.g., 4] equal installments of [installment amount]. Payments will be due on the [specific date, e.g., 1st] of each quarter, starting on [start date].
Installment payment for equipment purchase
This variation applies to equipment purchase agreements.
The Buyer agrees to purchase the equipment for a total price of [total amount], to be paid in [number of installments, e.g., 6] equal installments of [installment amount]. The first payment is due upon delivery of the equipment, and each subsequent installment is due on the [specific date, e.g., 15th] of each month.
Installment payment for renovation work
This variation applies to renovation work agreements.
The total cost for the renovation work is [total amount], payable in [number of installments, e.g., 4] equal installments of [installment amount]. The first payment is due on [start date], and each subsequent installment is due on the [specific date, e.g., 1st] of each month, with the final installment due upon completion of the project.
Installment payment for contract services with periodic payments
This variation applies to contract services with periodic payments.
The Client agrees to pay for services under this Agreement in [number of installments, e.g., 12] equal installments of [installment amount], with each installment due on the [specific day, e.g., 1st] of each month. Services will be rendered throughout the term of the contract, with the final payment due at the end of the term.
Installment payment for website development
This variation applies to website development contracts.
The total fee for the website development project is [total amount], payable in [number of installments, e.g., 4] equal installments of [installment amount]. The first installment is due on [start date], with the second installment due upon completion of the design phase, and subsequent payments due on the [specific date, e.g., 1st of each month] as per the development milestones.
Installment payment for a property purchase with a mortgage
This variation applies to property purchase agreements with mortgage payments.
The Buyer agrees to purchase the property for [total amount] and finance the purchase with a mortgage. The Buyer will pay [mortgage amount] in [number of installments, e.g., 12] monthly installments of [installment amount]. Payments will be due on the [specific date, e.g., 1st] of each month, starting on [start date].
Installment payment for bulk product orders
This variation applies to bulk product orders.
The Buyer agrees to purchase [number of units] of [product name] for a total price of [total amount], to be paid in [number of installments, e.g., 3] equal installments of [installment amount]. The first installment is due on [start date], with the remaining payments due on [specific dates, e.g., 1st and 15th of each month].
Installment payment for consulting project fees
This variation applies to consulting project fees.
The total fee for the consulting project is [total amount], payable in [number of installments, e.g., 5] equal installments of [installment amount]. The first payment is due on [start date], with each subsequent payment due on the [specific date, e.g., 1st] of each month, based on the agreed project milestones.
Installment payment for technology upgrades
This variation applies to technology upgrade agreements.
The Client agrees to pay the total amount of [total amount] for the technology upgrade in [number of installments, e.g., 3] equal installments of [installment amount]. The first installment is due upon execution of this Agreement, with subsequent payments due on the [specific date, e.g., 15th] of each month.
Installment payment for art or antique purchases
This variation applies to art or antique purchases.
The Buyer agrees to pay for the [art piece/antique] for a total price of [total amount] in [number of installments, e.g., 2] equal installments of [installment amount]. The first installment is due on [start date], with the final installment due on [specific date, e.g., 30th of the month].
Installment payment for business franchise
This variation applies to franchise agreements.
The Franchisee agrees to pay the total franchise fee of [total amount] in [number of installments, e.g., 4] equal installments of [installment amount]. The first installment is due upon signing of this Agreement, with the remaining installments due on the [specific date, e.g., 1st] of each month until the total is paid in full.
Installment payment for construction materials
This variation applies to payments for construction materials.
The total cost for the construction materials is [total amount], to be paid in [number of installments, e.g., 6] equal installments of [installment amount]. The first installment is due upon delivery of the first shipment of materials, with each subsequent installment due on the [specific day, e.g., 1st of each month].
Installment payment for legal fees
This variation applies to legal fee payments.
The Client agrees to pay the legal fees of [total amount] in [number of installments, e.g., 4] equal installments of [installment amount]. The first payment is due upon execution of this Agreement, and the subsequent payments will be due on the [specific date, e.g., 15th] of each month.
Installment payment for marketing campaigns
This variation applies to marketing campaign payments.
The total fee for the marketing campaign is [total amount], payable in [number of installments, e.g., 3] equal installments of [installment amount]. The first installment is due upon campaign launch, with the second and third installments due at the halfway point and upon completion of the campaign, respectively.
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.