LATE PAYMENTS
Other Names: Late Payment Penalty • Interest on Late Payments • Late Payment Fees • Overdue Payments
Sample Clause Language:
[PARTY B] shall pay interest on all late payments, calculated daily and compounded monthly at the lesser of the rate of [NUMBER]% per month or the highest rate permissible under applicable law, calculated daily and compounded monthly[; provided, that with respect to any disputed payments, no interest payment shall be due until such dispute is resolved and the interest which shall be payable thereon shall be based on the finally-resolved amount of such payment, calculated from the original date on which the disputed payment was due through the date on which payment is actually made]. [PARTY B] shall also reimburse [PARTY A] for all costs incurred in collecting any late payments, including, without limitation, attorneys’ fees, court costs, and collection agency fees. If [PARTY B] fails to pay any amounts when due under this Agreement, [PARTY A] may (a) suspend [the delivery of any Goods] [the performance of any Services], or (b) terminate this Agreement pursuant to the terms and conditions of this Agreement.
Source: Based on Sky Wolf Wind Turbine Corp. (2019, July 26). Form 8-K. Retrieved from SEC EDGAR website http://www.sec.gov/edgar.shtml
Description:
Late Payment clauses require a fee as damages for overdue payments. The sample clause here structures the late fee as an interest rate.
Common Contracts with this Clause:
- Service Agreements
- Sale of Goods Agreements
- Lease Agreement
- Loan Agreements
What you'll see with Lawgood:
Two (2) Alternative Positions
- Interest Rate
- Flat Rate
Draft better contracts with Lawgood.