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Simple English definitions for legal terms
indefinite payment
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A quick definition of indefinite payment:
Indefinite payment refers to a payment that has no specific end date or a payment that is not designated for a particular debt when made to a creditor who holds multiple debts of the payor. It can also refer to a series of payments with no specified due date. Payment is the act of fulfilling an obligation by delivering money or something else of value. For example, when you buy something, you make a payment to the seller in exchange for the item. A down payment is a portion of the purchase price paid in cash at the time of the sale agreement. A lump-sum payment is a large payment made all at once, while periodic payments are made over time instead of a one-time payment for the full amount.
A more thorough explanation:
Indefinite payment refers to a payment that has no specific due date or termination date. It can also refer to a payment that is not specified to which debt it should be applied when made to a single creditor who holds several of the payor's debts.
For example, if a person owes money to multiple creditors and makes a payment without specifying which debt it should be applied to, it is considered an indefinite payment. Another example is a stream of payments that has no end date, such as an annuity payment.
Indefinite payment is different from a lump-sum payment, which is a one-time payment of a large amount, and periodic payment, which is a series of payments made over time instead of a one-time payment for the full amount.
Overall, indefinite payment is a payment that lacks specificity in terms of due date or debt allocation.