From the course: How to Read a Business Contract

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Finding the financials within a contract

Finding the financials within a contract

From the course: How to Read a Business Contract

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Finding the financials within a contract

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- It goes without saying that money, whether payment or receipt of money, is important. It is not always obvious as to where to look for provisions regarding money. The go-to place is the payment terms, which may be housed under the heading Payment, or Charges, or Compensation. You may have already spotted the Consideration Clause, also known as the Compensation Clause. "In consideration of the services provided by company to client as set out in clause 2 below, the client agrees to pay the company 50,000 pounds." Or in the Charges section, you could see something like, "The client shall pay each invoice submitted to it by the company within 14 days of receipt." Remember, not every clause will look like this. Remember to check for the type of payments, whether fixed, ongoing, or calculated, using a rate card or some other source detailed or referred to in the contract. Be mindful to check for clauses that deal with the payment of interest for late payment. If you are the person to be…

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