Late Payment Interest
/ˈleɪt ˈpeɪmənt ˈɪntrəst/
Definitions
- (n.) Interest charged on overdue payments as a remedy for nonperformance under contracts or statutory obligations.
The contract stipulates a late payment interest rate of 5% per annum on overdue invoices.
Forms
- late payment interest
Related terms
See also
Commentary
Often used in contracts and commercial law to incentivize timely payments and compensate creditors for delayed performance.
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.