General Contract Clauses: Payment Terms

by Practical Law Commercial Transactions

Standard Clauses providing for the payment for goods or services in a commercial transaction. These Standard Clauses offer several alternative structures for payment obligations, including options for a single lump-sum payment, periodic installment payments, or a hybrid approach. This resource also addresses key issues related to payment, such as remedies for late payment including accrual of interest and the potential for suspending performance. It also provides a mechanism for disputing invoices. Additionally, these Standard Clauses contain alternative provisions on setoff rights, offering both pro-buyer language that reserves the right to setoff and pro-seller language that prohibits it. These Standard Clauses have integrated notes with important explanations and drafting and negotiating tips.