Legal Definitions - due-bill

A due-bill is a written acknowledgment of a debt or an obligation to provide something, such as money, goods, or services, to another party. It serves as a formal or informal document stating that something is "due" to the holder. While similar to an "IOU" (I Owe You), a due-bill often implies a more specific or business-related context, detailing the nature of the obligation and what is owed.

• Example 1: Retail Purchase

  A customer purchases a new smartphone from an electronics store. At the time of sale, the store realizes they are temporarily out of stock of the specific color the customer wants. To complete the transaction and assure the customer, the store issues a due-bill acknowledging the payment received and promising to provide the exact phone model and color within three business days once their new shipment arrives.

  Explanation: The due-bill in this scenario clearly states the store's obligation to deliver the specific item (the smartphone) to the customer, which is "due" to them in exchange for the payment already made.

• Example 2: Service Agreement

  A homeowner hires a plumbing company to install a new water heater. During the installation, the plumber discovers a minor part is missing and cannot complete the job immediately. To ensure the homeowner is satisfied and to document the remaining work, the plumbing company issues a due-bill promising to return the next morning with the correct part to finish the installation at no additional charge.

  Explanation: This due-bill serves as a written promise from the plumbing company, acknowledging their outstanding obligation to complete the agreed-upon service for the homeowner.

• Example 3: Event Credit

  Attendees pay a registration fee for a professional development conference. Due to an unexpected technical issue, one of the scheduled keynote speakers is unable to present. As compensation, the conference organizers issue a due-bill to each attendee, entitling them to a 25% discount on registration for any future conference hosted by the organization within the next year.

  Explanation: Here, the due-bill represents the organizers' acknowledgment of an unfulfilled part of their service and creates an obligation to provide a future benefit (a discount) to the attendees as a form of credit.