General Contract Clauses: Payment Terms (Early Payment Discount) | Practical Law

General Contract Clauses: Payment Terms (Early Payment Discount) | Practical Law

A Standard Clause to be used in a sale of goods contract or service contract to allow the customer to make early payment of a reduced invoice amount to satisfy its obligation to pay the full invoice amount.  For normal payment terms of 30 days, the amount of the discount is typically 1% or 2% if the customer makes payment within ten days. This Standard Clause has integrated drafting notes with important explanations and drafting and negotiating tips.

General Contract Clauses: Payment Terms (Early Payment Discount)

Practical Law Standard Clauses 1-563-0847 (Approx. 9 pages)

General Contract Clauses: Payment Terms (Early Payment Discount)

by Practical Law Commercial Transactions
MaintainedUSA (National/Federal)
A Standard Clause to be used in a sale of goods contract or service contract to allow the customer to make early payment of a reduced invoice amount to satisfy its obligation to pay the full invoice amount. For normal payment terms of 30 days, the amount of the discount is typically 1% or 2% if the customer makes payment within ten days. This Standard Clause has integrated drafting notes with important explanations and drafting and negotiating tips.