Legal Definitions - E.O.M.

E.O.M. stands for End of Month.

This abbreviation is commonly used in contracts, invoices, and other legal or business documents to specify that a particular action, payment, or condition must occur by the last day of the current calendar month.

Here are some examples of how E.O.M. might be applied:

• Payment Terms: Imagine a small business that supplies office furniture to larger corporations. An invoice might state "Payment Terms: Net 30 E.O.M." This means that even though the invoice was issued on, say, October 10th, the payment is not due 30 days from that date (November 9th). Instead, it's due by the end of the month following the 30-day period. So, if the invoice is dated October 10th, the 30-day period would end around November 9th, making the payment due by November 30th (the end of November). This provides a consistent monthly cutoff for accounting purposes.

• Contractual Deadlines: A software development company might have a contract with a client stating, "Phase 1 completion and client review must be finalized E.O.M. for project continuation." If this clause is in effect during July, it means that all deliverables for Phase 1 must be ready for the client's review, and the review itself must be completed, by July 31st. Failing to meet this deadline could trigger penalties or affect the project timeline as outlined in the contract.

• Reporting Requirements: In a lease agreement for a commercial property, a clause might require the tenant to submit "monthly sales reports E.O.M." This means that for each month of the lease, the tenant must provide a report detailing their sales figures by the last day of that month. For example, the sales report for September would need to be submitted by September 30th, allowing the landlord to track performance and potentially calculate percentage rent.