Payment in Advance
/ˈpeɪmənt ɪn ədˈvɑːns/
Definitions
- (n.) A monetary sum paid before the receipt of goods, services, or performance, ensuring commitment to the contract terms.
The buyer made a payment in advance to secure the order from the supplier.
Related terms
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Commentary
Payment in advance often serves as a security measure and may affect risk allocation between contracting parties; clear terms should specify conditions under which refunds or credits apply.
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.