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Payment Terms Agreement

A completed supplier-customer payment agreement with credit limits, invoice rules, late payment safeguards and disputes.

Jurisdiction: England and Wales - completed fictional worked example

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An editable Microsoft Word version is available from the interactive page.

Important: This sample provides general legal information only and is not legal advice. Check the law, prescribed forms and signing requirements that apply to your exact jurisdiction and circumstances before use.

# PAYMENT TERMS AGREEMENT

Date: 22 October 2031

Parties: Bramble Office Supplies Limited and Northgate Architects Limited

## 1. Purpose and parties

Bramble Office Supplies Limited will supply paper, toner and ergonomic equipment to Northgate Architects Limited from 1 November 2031. Northgate's approved credit limit is £20,000; each purchase order, delivery and price is recorded in the schedule rather than being left to an oral promise.

## 2. Facts, scope and terms

Invoices are issued on dispatch with the purchase-order number, VAT details, delivery date and bank account ending 4421. Northgate pays undisputed invoices within 30 days of a valid invoice; a missing or disputed item is notified within ten days, while the undisputed balance remains payable.

## 3. Process and responsibilities

Bramble may charge statutory interest and reasonable fixed compensation under the Late Payment of Commercial Debts (Interest) Act 1998. It will not add a hidden administration fee or stop essential supplies without five business days' written warning, except for a genuine safety or fraud risk.

## 4. Evidence, records and safeguards

The parties reconcile statements monthly. Delivery notes, acceptance records, credit notes, purchase orders and payment confirmations are retained for seven years, with access limited to finance staff and lawful auditors. Bank-detail changes require independent callback verification, not email alone.

## 5. Review, escalation and outcome

If a delivery dispute continues for 14 days, the finance leads meet, then use a jointly appointed mediator in Birmingham. Bramble may suspend new non-essential orders if undisputed arrears exceed £20,000, but must not repossess installed equipment without a lawful basis.

## 6. Reservations and practical protections

Neither party may set off an unrelated claim without written agreement. Northgate may reject defective goods under the agreed warranty and Bramble must give reasonable credit or replacement; neither the credit limit nor payment term guarantees future orders.

## 7. England and Wales law and completion

This completed fictional agreement is dated 22 October 2031 and governed by England and Wales law. Authorised representatives sign it, and notices may be hand-delivered, posted or emailed with delivery evidence.

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