PAYMENT terms

Every contract contains provisions about consideration, generally about the payment of the purchase price, salary or rent. In this lesson we are going to have a look at the most typical phrases used in contracts and legal documents to refer the payment terms.

In consideration of is used when the price or a similar concept is used as paid ’in return for’ or ‘in exchange of’.

In consideration of the services provided under this Agreement, Principal shall pay Agent…

Within X (banking/working) days

The second instalment, that is HUF 7,000,000, shall be paid by the Buyer within ten days of the execution of the present agreement.

In one lump sum means the same as ‘in one part.’

The Contracting Parties agree that the Buyer shall pay in one lump sum.

In /by instalments means the same as ‘in several parts.’

The Contracting Parties agree that the Buyer shall pay in monthly instalments.

(Weekly / Monthly) in arrear is used when the instalments are paid at the end of the period of time during which the money was earned; the opposite of ‘in advance’.

The repayment of the loan shall be collected monthly in arrear.

In advance is used when the payment has to be received in full before the goods or services are delivered.

Company is entitled to request payment in advance or an acceptable guarantee of payment from Customer.

In cash

The purchase price is payable in cash.

By wire transfer / by bank transfer (credited to the seller’s account)

Company shall pay Contractor’s fee within 8 banking days of the receipt of the invoice by bank transfer to Contractor’s bank account (bank account number: …).

Deliver / deposit into escrow with somebody is stipulated in a contract if the buyer’s money, such as the deposit, or earnest is held by the attorney-at-law(escrow agent) until such time as the transaction completes.

Upon the conclusion of the Contract, Buyer has deposited with the Escrow Agent an earnest of HUF 10.000.000.