Legal Definitions - due and owing

The legal phrase due and owing describes an obligation, typically a financial one, that is both currently required to be paid or fulfilled and has not yet been satisfied. It signifies that a debt, a claim, or a contractual responsibility is legitimately owed by one party to another, the time for its payment or fulfillment has arrived, but the payment or fulfillment has not occurred.

• Example 1: A tenant's monthly rent payment of $1,500 was stipulated in their lease agreement to be paid on the first day of each month. If it is now the fifth day of the month and the landlord has not received the payment, the $1,500 is considered due and owing.

  Explanation: This illustrates the term because the payment date (the first) has passed, making the rent 'due,' and the tenant has not yet paid it, meaning it is still 'owing.'

• Example 2: A small business hired a marketing consultant to design a new logo. The consultant completed the work and submitted an invoice for $2,000 with a payment term of 30 days. If 35 days have passed since the invoice was issued and the business has not yet paid, the $2,000 is due and owing.

  Explanation: Here, the 30-day payment period has expired, making the payment 'due,' and since the business has not remitted the funds, the amount remains 'owing.'

• Example 3: A construction company completed a project for a client and, upon final inspection, identified an outstanding balance of $15,000 for additional materials approved during the build. The contract specifies that all final balances are payable within 14 days of project completion. If 20 days have passed and the client has not paid this amount, the $15,000 is due and owing.

  Explanation: The 14-day period for payment has elapsed, meaning the balance is 'due,' and because the client has not yet settled the amount, it is still 'owing.'