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Down Payment

DOWN PAYMENT

A percentage of the total purchase price of an item that is proffered when the item is bought on credit.

In an installment sales agreement, a buyer is required to pay part of the total price, usually in cash, and later pays the balance through a number of regularly scheduled payments.

A down payment is sometimes known as earnest money, or a sum of money that a buyer pays upon entering a contract to indicate a good faith intention as well as an ability to pay the balance.

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"Down Payment." West's Encyclopedia of American Law. . Encyclopedia.com. 27 Jun. 2017 <http://www.encyclopedia.com>.

"Down Payment." West's Encyclopedia of American Law. . Encyclopedia.com. (June 27, 2017). http://www.encyclopedia.com/law/encyclopedias-almanacs-transcripts-and-maps/down-payment

"Down Payment." West's Encyclopedia of American Law. . Retrieved June 27, 2017 from Encyclopedia.com: http://www.encyclopedia.com/law/encyclopedias-almanacs-transcripts-and-maps/down-payment

down payment

down pay·ment • n. an initial payment made when something is bought on credit.

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"down payment." The Oxford Pocket Dictionary of Current English. . Encyclopedia.com. 27 Jun. 2017 <http://www.encyclopedia.com>.

"down payment." The Oxford Pocket Dictionary of Current English. . Encyclopedia.com. (June 27, 2017). http://www.encyclopedia.com/humanities/dictionaries-thesauruses-pictures-and-press-releases/down-payment

"down payment." The Oxford Pocket Dictionary of Current English. . Retrieved June 27, 2017 from Encyclopedia.com: http://www.encyclopedia.com/humanities/dictionaries-thesauruses-pictures-and-press-releases/down-payment