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Simple English definitions for legal terms
two-party payment
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A quick definition of two-party payment:
A two-party payment is when one payment is made to two people at the same time. This is usually done by check and the amount is split between the two people. Payment is when someone gives money or something valuable to fulfill an obligation. There are different types of payments, such as down payments, installment payments, and lump-sum payments.
A more thorough explanation:
Definition: Two-party payment refers to a single payment made by check to two people, usually for the sum of the amount due to each person.
Example: John and Jane are roommates who share the rent and utility bills. They receive a bill for $1000, with $500 due for rent and $500 due for utilities. To make the payment, they write a check for $1000 and both of them endorse it. This is an example of a two-party payment.
This type of payment is commonly used when two parties share an expense and want to make a single payment to simplify the process. It is also used in situations where two parties are owed money and want to receive payment together.