PAYMENT
payment. 1. Performance of an obligation by the delivery of money or some other valuable thing accepted in partial or full discharge of the obligation. [Cases: Payment 1. C.J.S. Payment § 2.] 2. The money or other valuable thing so delivered in satisfaction of an obligation.
advance payment. A payment made in anticipation of a contingent or fixed future liability or obligation.
balloon payment. A final loan payment that is usu. much larger than the preceding regular payments and that discharges the principal balance of the loan. See balloon note under NOTE(1). conditional payment.Payment of an obligation only on condition that something be done. • Generally, the payor reserves the right to demand the payment back if the condition is not met. [Cases: Payment 33.]
constructive payment. A payment made by the payor but not yet credited by the payee. • For example, a rent check mailed on the first of the month is a constructive payment even though the landlord does not deposit the check until ten days later.
direct payment. 1. A payment made directly to the payee, without using an intermediary, such as a child-support payment made directly to the obligee parent rather than through the court. 2. A payment that is absolute and unconditional on the amount, the due date, and the payee.
down payment.The portion of a purchase price paid in cash (or its equivalent) at the time the sale agreement is executed. Cf. BINDER(2); EARNEST MONEY. [Cases: Vendor and Purchaser 69.1, 334(1). C.J.S. Vendor and Purchaser §§ 135, 137–138, 640, 642–644, 648.]
indefinite payment. 1. A stream of payments with no termination date, or a single payment with no specified due date. 2. A payment that does not specify to which debt it should be applied when it is made to a single creditor who holds several of the payor’s debts.
installment payment. One of a series of periodic payments made under an installment plan. See INSTALLMENT SALE.
involuntary payment. A payment obtained by fraud or duress. [Cases: Payment 86–87. C.J.S. Payment §§ 105, 112.]
lump-sum payment. A payment of a large amount all at once, as opposed to smaller payments over time. Cf. periodic payment.
part payment. A buyer’s delivery of money or other thing of value to the seller, and its acceptance by the seller, when the money or the value of the thing does not equal the full sum owed. [Cases: Sales 202(7); Vendor and Purchaser 184. C.J.S. Sales § 223; Vendor and Purchaser § 429.]
periodic payment. One of a series of payments made over time instead of a one-time payment for the full amount. Cf. lump-sum payment.
two-party payment. A single payment made by check to two people, usu. for the sum of the amount due to each person.
unofficious payment. A payment made by a person who has an interest in seeing that it should be made.
[Blacks Law 8th]