Down Payment
/ˈdaʊn ˌpeɪmənt/
Definitions
- (n.) An initial partial payment made at the outset of a purchase or contract, securing the agreement and often reducing the financed balance.
The buyer made a down payment of 20% to secure the property.
Forms
- down payments
Related terms
See also
Commentary
A down payment is crucial in contract drafting as it evidences serious intent and affects the parties' rights upon default.
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.