payment due date
Definition
The payment due date is the specific calendar date by which you must receive money owed to you, or by which you must pay money you owe to someone else. Missing this date can trigger late fees, interest charges, or even give the other party the right to cancel a contract.
Example
If your invoice says payment is due on the 30th of the month, your customer must send you the full amount by that date to avoid any penalties you outlined in your agreement.
Watch Out
Make sure your contracts clearly spell out what happens when a payment due date is missed, because vague language about deadlines can make it very hard to collect late fees or take legal action.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.