Terms of Payment Agreement Sample

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When conducting business, it is crucial to have a clear and concise agreement in place regarding payment terms. This agreement helps ensure that both parties understand their responsibilities and avoids any confusion or disputes in the future. In this article, we will provide a sample terms of payment agreement that businesses can use as a guide when creating their own.

Introduction:

This payment agreement (“Agreement”), is entered into by and between [Business name] (“Seller”) and [Client name] (“Buyer”), collectively referred to as the “Parties”. The purpose of this Agreement is to establish the terms and conditions for payment due from Buyer to Seller for goods and/or services provided.

Payment Terms:

1. Payment Due Date: Payment shall be due within [number of days] days from the date of invoice issued by Seller.

2. Payment Method: Payment shall be made via [accepted payment methods such as credit card, bank transfer, etc.].

3. Late Payment: In the event of late payment, interest shall accrue on the outstanding balance at the rate of [interest rate] per month.

4. Dispute Resolution: In the event of a dispute regarding payment, the Parties agree to engage in good faith negotiations to resolve the issue.

5. Collection Costs: Buyer shall be responsible for all collection costs and expenses, including reasonable attorney’s fees, incurred by Seller in the event of non-payment or late payment.

6. Termination: Seller reserves the right to terminate any services or agreements with Buyer in the event of non-payment or late payment.

Conclusion:

This sample terms of payment agreement serves as a guideline for businesses to establish their own payment terms. It is important to include all necessary clauses and terms to ensure both parties are aware of their responsibilities and obligations. A clear and detailed payment agreement can help avoid disputes and maintain a positive business relationship between Buyer and Seller.

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