payment

The fulfilment of a promise, or the performance of an agreement. A discharge of an obligation or debt, and part payment, if accepted, is a discharge pro tanto.

In a more restricted legal sense payment is the performance of a duty, promise, or obligation, or discharge of a debt or liability, by the delivery of money or other value by a debtor to a creditor, where the money or other valuable thing is tendered and accepted as extinguishing debt or obligation in whole or in part. Also the money or other thing so delivered. U.C.C. No.No. 2-511, 3-604.

Payment is a delivery of money or its equivalent in either specific property or services by one person from whom it is due to another person to whom it is due. Sizemore v. E. T. Barwick Industries, Inc., 225 Tenn. 226, 465 S.W.2d 873, 875.

A discharge in money or its equivalent of an obligation or debt owing by one person to another, and is made by debtor's delivery to creditor of money or some other valuable thing, and creditor's receipt thereof, for purpose of extinguishing debt. Allmon v. Allmon, Mo.App., 306 S.W.2d 651, 655.

Under Internal Revenue Code provision allowing deduction for charitable contribution of which payment is made within taxable year, "payment" need not be in money, but subject matter must have been placed beyond dominion and control of donor. Pauley v. U. S., C.A.Cal., 459 F.2d 624, 626.

The execution and delivery of negotiable papers is not payment unless it is accepted by the parties in that sense. U.C.C. No. 3-110.

See also compulsory payment

- conditional payment

- constructive payment

- down payment

- final payment

- guaranty of payment

- installment credit

- installment loan

- installment sale

- involuntary payment

- liquidation

- lumpsum payment

- pay.

Affirmative defense.

Payment is an affirmative defense which must be pleaded under Fed.R. Civil P. 8(c). It is a plea in avoidance. Harrison v. Leasing Associates, Inc., Tex.Civ.App., 454 S.W.2d 808, 809.

- balloon payment.

@ part payment

The reduction of any debt or demand by the payment of a sum less than the whole amount originally due. The rule of partial payments is to apply the payment, in the first place, to the discharge of the interest then due. If the payment exceeds the interest, the surplus goes toward discharging the principal, and the subsequent interest is to be computed on the balance of principal remaining due. If the payment be less than the interest, the surplus of the interest must not be taken to augment the principal; but interest continues on the former principal until the period of time when the payments, taken together, exceed the interest then due, to discharge which they are applied, and the surplus, if any, is to be applied towards the discharge of the principal, and the interest is to be computed on the balance as aforesaid, and this process continues until final settlement

@ payment into court

The act of a defendant in depositing the amount which he admits to be due, with the proper officer of the court, for the benefit of the plaintiff and in answer to his claim. Fed.R. Civil P. 67.

+ payment into court

The deposit of funds or other things capable of delivery with the court during the pendency of a lawsuit. Fed.R.Civil P. 67

@ voluntary payment

A payment made by a debtor of his own will and choice, as distinguished from one exacted from him by process of execution or other compulsion

@ payment bond

See Miller Act

- performance bond.

@ payment guaranteed

"Payment guaranteed" or equivalent words added to a signature mean that the signer engages that if the instrument is not paid when due he will pay it according to its tenor without resort by the holder to any other party. U.C.C. No. 4-416

@ payment in due course

With respect to negotiable instruments, means payment at or after the instrument's maturity date to the holder in good faith and without notice that the title is defective.

Under the Negotiable Instruments Law, a negotiable instrument could be discharged by payment in due course by or on behalf of the principle debtor; see e.g. Bourg v. Wiley, La., 398 So.2d 13, 15. The Uniform Commercial Code No. 3-603 eliminates any reference to payment in due course. It is now covered by No. 3-601(3)

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