PARTIAL PAYMENT Meaning and
Definition
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Partial payment is a financial term that refers to a payment made towards a debt, purchase, or outstanding balance that is less than the full amount owed. It is a form of payment where the debtor remits a portion of the total sum owed, instead of paying the entire amount in a single transaction. This type of payment is often used when the debtor is unable to meet their financial obligation fully, but wishes to make progress towards reducing their debt or fulfilling their financial commitment.
When a partial payment is made, it typically represents a temporary resolution rather than a complete settlement, as the remaining balance is still outstanding. Creditors may accept partial payments to maintain a positive relationship with the debtor and encourage continued effort towards repayment. Furthermore, partial payments may contribute to improving the debtor's credit history, given that they are making consistent efforts to address their financial obligations.
It is important to note that partial payments can sometimes have implications on the contractual agreements between the debtor and creditor. Specific terms and conditions surrounding partial payments should be clearly outlined, as they may affect interest rates, late fees, or other contractual elements. Both parties involved should be aware of the rules governing partial payments to avoid any misunderstandings or potential complications related to the debt or outstanding balance.
Common Misspellings for PARTIAL PAYMENT
Etymology of PARTIAL PAYMENT
The etymology of the word "partial payment" comes from the combination of two Latin roots.
1. "Partial" derives from the Latin word "pars" or "part-" meaning a part or portion. It is related to words such as "partition" and "partner".
2. "Payment" comes from the Latin verb "pacare", meaning to appease or settle. It is connected to the noun "pax" meaning peace.
Therefore, the term "partial payment" can be understood as a portion or part of a payment meant to settle or appease a debt or obligation.
