PAYMENT CONTRACT (PARTY-1 BUYS) (FEES AND PAYMENT SCHEDULE)

This payment contract clause (free to save and download) covers fees when you are the customer, and explains the payment amount and payment schedule for a payment contract.

Question 1 of 2

Question 2 of 2

1 Fee (Services/Deliverables)

FEE (Services/Deliverables) (Party-1 Buys) - What are the fees?

Flat fee.

In consideration for Party-2 performing all obligations under this Agreement, Party-1 agrees to pay Party-2 a flat fee of:

What is the flat fee?

Rate fee.

	Hourly Rate. In consideration for Party-2 performing all obligations under this Agreement, Party-1 agrees to pay Party-2 the product of the total number of hours performed by Party-2 multiplied by the following hourly rate(s): What is the hourly rate for each member of Party-2's personnel?
	Daily Rate. In consideration for Party-2 performing all obligations under this Agreement, Party-1 agrees to pay Party-2 the product of the total number of full eight (8) hour days performed by Party-2 multiplied by the following daily rate(s): What is the daily rate for each member of Party-2's personnel?

Guaranteed maximum fee equal to the lesser of a flat fee, or either an hourly rate fee or daily rate fee.

Guaranteed maximum flat fee.

In consideration for Party-2 performing all obligations under this Agreement, Party-1 agrees to pay Party-2 the lesser of: (a) a flat fee of

What is the maximum flat fee?

Hourly rate fee or daily rate fee?

	Hourly rate. or (b) the product of the total number of hours performed by Party-2 multiplied by the following hourly rate: What is the hourly rate for each member of Party-2's personnel?
	Daily rate. or (b) the product of the total number of full eight (8) hour days performed by Party-2 multiplied by the following daily rate: What is the daily rate for each member of Party-2's personnel?

Per Service/Deliverable fee.

In consideration for Party-2 providing each of the following, Party-1 agrees to pay Party-2 as follows:

Please list each Service/Deliverable and fee.

Per milestone fee.

In consideration for Party-2 achieving each of the following milestones, Party-1 agrees to pay Party-2 as follows:

Please list each milestone and fee.

Other arrangements.

In consideration for Party-2's performance under this Agreement, Party-1 agrees to pay Party-2 as follows:

Please list each fee.

2 Fee (Payment Schedule)

FEE - PAYMENT SCHEDULE (Party-1 Buys) - What is the payment schedule?

Payment schedule by percentages of overall flat fee.

3 payments.

1/3 payment on Effective Date, 1/3 on Deliverables receipt date, and 1/3 on Deliverables acceptance date.

Party-2 may invoice Party-1 for 33% of the overall flat fee in this Agreement on the Effective Date. Party-2 may invoice Party-1 for 33% of the overall flat fee in this Agreement on the date the Deliverables are received by Party-1. Party-2 may invoice Party-1 for 34% of the overall flat fee in this Agreement on the date the Deliverables are accepted by Party-1.

1/3 payment on Effective Date, 1/3 on Deliverables shipment date, and 1/3 on Deliverables receipt date.

Party-2 may invoice Party-1 for 33% of the overall flat fee in this Agreement on the Effective Date. Party-2 may invoice Party-1 for 33% of the overall flat fee in this Agreement on the date the Deliverables are shipped by Party-2 to Party-1. Party-2 may invoice Party-1 for 34% of the overall flat fee in this Agreement on date the Deliverables are received by Party-1.

4 payments (for deals where Deliverables specifications will be created).

1/4 payment on Effective Date, 1/4 on Deliverables specifications date, 1/4 on Deliverables receipt date, and 1/4 on Deliverables acceptance date.

Party-2 shall invoice Party-1 for 25% of the overall flat fee in this Agreement on the Effective Date. Party-2 shall invoice Party-1 for 25% of the overall flat fee in this Agreement on the date the specifications for the Deliverables are mutually agreed to by the parties in writing. Party-2 shall invoice Party-1 for 25% of the overall flat fee in this Agreement on the date the Deliverables are received by Party-1. Party-2 shall invoice Party-1 for 25% of the overall flat fee in this Agreement on the date the Deliverables are accepted by Party-1.

1/4 payment on Effective Date, 1/4 on Deliverables specifications date, 1/4 on Deliverables shipment date, and 1/4 on Deliverables receipt date.

Party-2 shall invoice Party-1 for 25% of the overall flat fee in this Agreement on the Effective Date. Party-2 shall invoice Party-1 for 25% of the overall flat fee in this Agreement on the date the specifications for the Deliverables are mutually agreed to by the parties in writing. Party-2 shall invoice Party-1 for 25% of the overall flat fee in this Agreement on the date the Deliverables are shipped by Party-2 to Party-1. Party-2 shall invoice Party-1 for 25% of the overall flat fee in this Agreement on the Deliverables are received by Party-1.

I will specify the percentages and dates/milestones.

Party-2 shall invoice Party-1 for the following percentages of the fee at the following times:

Please specify the percentages and dates/milestones.

Monthly payments for Services based on hourly rate.

Party-2 shall invoice Party-1 once monthly for all Services hours incurred in the previous calendar month.

Payment of overall flat fee upon Deliverable acceptance or receipt.

	Acceptance. Party-2 shall invoice Party-1 for the entire overall flat fee in this Agreement on the date the Deliverables are accepted by Party-1.
	Receipt. Party-2 shall invoice Party-1 for the entire overall flat fee in this Agreement on the date the Deliverables are received by Party-1.

Payment upon milestone achievement.

Please specify each milestone and the fee amount to be invoiced.

Different payment schedules for different Services and Deliverables.

Please specify each fee payment schedule.

A fee in this context can take many forms, including a flat fee, the total of the hours/days incurred times the hourly/daily rates, a guaranteed maximum fee, a per Service/Deliverable fee, a per milestone fee, or other arrangement.

"Payment Schedule" means when the vendor will bill the customer. The customer may prefer not to be billed until after acceptance, which is a legal concept that gives the customer a short testing period after receiving goods or services to determine whether or not they are satisfactory. The vendor instead prefers to invoice the customer upon receipt of goods or services, so that the vendor can recognize its revenue sooner.

FEES. Except as expressly stated in this Agreement, there are no additional fees, charges or expenses incurred. In consideration for Party-2 performing all obligations under this Agreement, Party-1 agrees to pay Party-2 a flat fee of: [QR-53] Party-2 shall invoice Party-1 for the entire overall flat fee in this Agreement on the date the Deliverables are received by Party-1. [QR-56]