Incentive Payment
/ɪnˈsɛntɪv ˈpeɪmənt/
Definitions
- (n.) A monetary or non-monetary reward provided to encourage specific performance or behavior, often used in contracts or employment to motivate parties.
The company offered an incentive payment to employees who met their sales targets.
- (n.) A payment made to induce a party to act in a particular way, such as to accelerate a project or comply with terms.
The contractor received an incentive payment for completing the work ahead of schedule.
Forms
- incentive payment
- incentive payments
Related terms
See also
Commentary
In drafting, clearly specify the conditions triggering an incentive payment to avoid disputes; these terms are often critical in employment and contract law.
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.