Paid Under the Agreement: Understanding Payment Terms
As a freelancer or business owner, it is essential to understand the payment terms outlined in an agreement. One term that often appears is “paid under the agreement,” but what does it mean?
Paid under the agreement refers to the payment terms agreed upon between the two parties in a contract. It outlines when and how the payment will be made to the service provider, such as a freelancer or business.
In most cases, paid under the agreement means that the payment will be made in installments, with the first installment usually due upon completion of a specific milestone or project. The remaining payments will then be made based on a predetermined schedule or after additional milestones are completed.
It is important to note that the payment terms may also include a penalty or additional fees for late payments. As such, it is crucial to ensure that the payment schedule outlined in the agreement is feasible and realistic, especially if you are the service provider.
If you are the party paying under the agreement, it is essential to communicate any potential delays in advance to avoid any penalties or additional fees. Additionally, it is crucial to ensure that you have the funds available to make the payments on time.
In some cases, paid under the agreement may also refer to a retainer fee. This is where the service provider is paid a set amount upfront to reserve their time for future work. The retainer fee is then deducted from the final payment or paid on an ongoing basis.
Ultimately, understanding paid under the agreement is crucial for both parties to ensure a smooth and successful business relationship. It is important to review the payment terms carefully before signing any contract and to communicate any concerns or questions in advance.
In conclusion, the term paid under the agreement refers to the payment terms agreed upon between the two parties in a contract. Whether it is a retainer fee or installment payments, it is essential to review and understand the payment terms outlined in the agreement to avoid any potential financial disputes or penalties.
