Legal Definitions - payment date

The payment date is the specific day on which a financial obligation is due to be paid or fulfilled. It represents the deadline by which money or other agreed-upon consideration must be transferred from one party to another, as stipulated in a contract, invoice, loan agreement, or legal order.

• Example 1 (Utility Bill): Mark receives his electricity bill each month, which clearly states that the "Amount Due By" is the 20th of the month. If he fails to pay by this date, he may incur a late fee.

  Explanation: The 20th of the month is the payment date because it is the precise day by which Mark is obligated to transfer funds to the utility company to avoid penalties and ensure continued service.

• Example 2 (Real Estate Transaction): In a commercial property sale, the purchase agreement specifies that the final balance of the purchase price must be wired to the seller's attorney by the closing date, which is set for June 15th.

  Explanation: June 15th serves as the payment date. It is the critical deadline by which the buyer must transfer the remaining funds to complete the property acquisition, as legally agreed upon in the sales contract.

• Example 3 (Contract for Services): A freelance graphic designer completes a logo project for a startup company. Their contract stipulates that the final payment of 50% of the project fee is due within 7 days of the project's completion and final approval. If the project is approved on March 1st, the payment date would be March 8th.

  Explanation: March 8th is the payment date because it is the specific day by which the startup company is contractually required to pay the remaining balance to the graphic designer for the services rendered.