Advance Payment
/ˈædvɑːns ˈpeɪmənt/
Definitions
- (n.) A payment made ahead of its normal schedule, typically before goods or services are delivered, to secure performance or contract fulfillment.
The buyer made an advance payment to ensure the supplier would begin production promptly.
Forms
- advance payments
Related terms
See also
Commentary
Advance payments are often used to reduce risk between parties and should be clearly defined in contracts to avoid disputes regarding refundability or application to final payment.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.