Contractual Deduction

/ˌkɒn.træk.tʃu.əl dɪˈdʌk.ʃən/

Definitions

  1. (n.) An agreed reduction in payment or amount under a contract, typically to account for overpayment, damages, or penalties.
    The invoice reflected a contractual deduction for the delayed delivery.

Forms

  • contractual deductions

Commentary

Use precise language to specify the basis and extent of the deduction to avoid disputes.

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.

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