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LSDefine
Simple English definitions for legal terms
direct payment
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A quick definition of direct payment:
Direct payment is when someone pays another person or company without using anyone else in between. For example, if a parent pays child support directly to the other parent instead of going through the court, that is a direct payment. Direct payments are also absolute and unconditional, meaning they are for a specific amount, due on a specific date, and paid to a specific person without any conditions attached.
A more thorough explanation:
Definition: Direct payment refers to a payment made directly to the payee without using an intermediary. It is an absolute and unconditional payment on the amount, due date, and payee.
Example: A child-support payment made directly to the obligee parent instead of going through the court is an example of direct payment. Another example is when a customer pays a vendor directly for goods or services without involving a third party.
These examples illustrate that direct payment is a straightforward and immediate transaction between the payer and payee, without any intermediaries involved. It is a secure and efficient way of making payments, especially for recurring payments like rent, utilities, and subscriptions.