Legal Definitions - part payment

Part payment refers to a payment made that covers only a portion of a larger debt or financial obligation, rather than the full amount owed. It reduces the outstanding balance but does not completely settle the entire debt.

Here are some examples to illustrate this concept:

• Example 1: Paying a Monthly Bill

  Imagine a small business that owes its utility company $800 for the month's electricity. Due to an unexpected expense, the business owner can only send a check for $400 by the due date, with a plan to pay the remaining balance the following week. The $400 sent is a part payment because it covers only half of the total amount due, reducing the outstanding debt but not fully satisfying the bill.

• Example 2: Acknowledging an Old Debt

  Years ago, David borrowed $1,000 from a friend. Although he hasn't been able to repay it, he recently sent his friend $50, along with a note apologizing for the delay and promising to pay more when he can. This $50 is considered a part payment. It acknowledges the existence of the larger, outstanding debt and reduces the principal amount owed, even if it's a small fraction of the total.

• Example 3: Deposit for Services

  A couple hires a wedding photographer for a total package cost of $3,000. The photographer's contract requires an initial deposit of $1,000 to secure the date and begin planning. This $1,000 is a part payment. It's a portion of the total service fee paid upfront, which reduces the remaining balance the couple will owe closer to the wedding date.