Payment Terms Agreement
A payment terms agreement is a simple contract that records an amount owed between two parties, along with the due date and method of payment, without the broader terms of a full service or sales contract. Use this when you need a simple, signed record of what's owed, by when, and how it'll be paid — without a full contract.
What's included
A ready-to-use payment terms agreement with signature fields already placed for Payer and Payee. Fill in the bracketed details (like [Company Name] or [Date]) using Docracy's built-in text editor, then send it out for signature.
This is a general template for informational purposes only and does not constitute legal advice. Consult a qualified attorney to review it for your specific situation and jurisdiction before use.
Key clauses
- Amount owed
- Due date
- Accepted payment method(s)
- Late payment consequences
- Acknowledgment of debt by both parties
What you'll fill in
[Payor Name][Payee Name][Amount Owed][Due Date][Payment Method][Late Fee/Interest, if any][Reason for Payment/Invoice Reference]Legal summary
Signing a payment terms agreement creates a documented acknowledgment that one party owes a specific sum to another and agrees to pay it by a set date and method. It serves as evidence of the debt and its terms, which can be useful if a dispute arises over whether or how much was owed.
Free for up to 2 signers, no account required. Need unlimited? Flat $10/month.
FAQ
Is this Payment Terms Agreement legally binding?
Signing through Docracy uses a simple electronic signature (SES), which is legally recognized for everyday business agreements under laws like the U.S. ESIGN Act and the EU's eIDAS regulation. This is a general template, not legal advice — for high-stakes or regulated agreements, have a qualified attorney review it for your situation.
Who needs to sign this Payment Terms Agreement?
This template includes signature fields for Payer and Payee — already placed, so you just fill in the details and send.
Can I edit this Payment Terms Agreement before sending it?
Yes — Docracy's editor lets you edit the text, add or remove signature fields, redact sections, and reorder pages before you send it.
Do I need an account to send this Payment Terms Agreement?
No — it's free for up to 2 signers with no account required. Create a free account only if you want to save it to a dashboard or reuse it later.
Try it with an AI assistant
Paste one of these into ChatGPT, Claude, or your assistant of choice:
“Generate a filled Payment Terms Agreement for an outstanding invoice due in 30 days.”
“Explain what happens if the payor misses the due date in this Payment Terms Agreement.”
“Adapt this Payment Terms Agreement to include a late fee for payments received after the due date.”
Why teams start with Docracy
“Docracy is a great product that I have tested and am using. It is easy to use, has good tools, is always up to date, and implements new features. Highly recommended.”— DACH Advisory
Free for up to 2 signers, no account required. Need unlimited? Flat $10/month.