Contract Interest
/ˈkɒntrækt ˈɪntrəst/
Definitions
- (n.) The interest accrued on sums due under the terms of a contract, typically representing compensation for delayed payment.
The plaintiff claimed contract interest on the overdue invoice amount.
Forms
- contract interest
Related terms
See also
Commentary
Contract interest is often specified within agreements to compensate parties for late payments, distinct from statutory or prejudgment interest rates.
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.