Contingent Payment
/kənˈtɪn.dʒənt ˈpeɪ.mənt/
Definitions
- (n.) A payment conditioned on the occurrence of a specified event or the achievement of certain results.
The seller agreed to a contingent payment depending on the future profits of the business.
- (n.) In tax law, an amount paid only if specific criteria are met, affecting the timing or amount of taxable income.
Contingent payments can complicate the calculation of capital gains for tax purposes.
Forms
- contingent payment
- contingent payments
Related terms
See also
Commentary
Contingent payments are often used in sale agreements where the total price depends on future events; precise drafting is essential to define triggering conditions.
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.