Partial Payment
/ˈpɑːrʃəl ˈpeɪmənt/
Definitions
- (n.) A payment made towards a debt or obligation that does not satisfy the full amount owed.
The debtor made a partial payment to reduce the outstanding balance.
- (n.) A payment accepted as fulfillment of an obligation where the creditor agrees to settle for less than the total amount owed, often called a settlement payment.
The creditor accepted a partial payment as full settlement of the claim.
Forms
- partial payments
Related terms
See also
Commentary
Partial payments may affect the status of a debt differently depending on whether they are accepted as part performance or as a settlement; precise terms should be clearly documented in agreements.
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.