Glossary
Payment terms clause
A contract provision specifying when and how the client must pay — due dates (e.g., Net 30), accepted payment methods, currency, and any deposit or upfront payment requirements.
A contract provision specifying when and how the client must pay — due dates (e.g., Net 30), accepted payment methods, currency, and any deposit or upfront payment requirements.
Example
A contract's payment terms clause requires a 50% deposit before work begins, with the remaining balance due Net 15 from final delivery, payable by ACH or credit card.
Why it matters for agencies
Clear payment terms are a prerequisite for enforcing everything else — a late payment clause or kill fee clause is only as strong as the due dates and payment mechanics defined here, which is why this clause is worth writing precisely rather than treating as boilerplate.