- Extract payment terms from your contract30 min
Create a one-page reference document that lists every payment-related clause from your signed contract or agreed terms of service.
This single sheet becomes the authority you cite in your demand letter, interest calculation, and court complaint — so copy the language verbatim, not paraphrased.
Start from the signed contract or the latest agreed terms of service. If you work from a proposal that the client signed, that proposal is your contract.
Copy these clauses verbatim into a document labeled “Payment Terms Reference – [Client Name]”:
- Payment due date or net terms (e.g., “Net 30” or “due upon receipt”)
- Late fee clause — the dollar amount or percentage charged on overdue payments
- Interest rate on overdue amounts — a specific APR or a reference to “the maximum rate allowed by law”
- Governing law provision — which state’s law applies (this determines the statutory interest rate if the contract is silent)
- Attorney-fee clause — whether the prevailing party can recover legal costs
- Dispute resolution clause — any requirement to mediate, arbitrate, or attempt informal negotiation before suing
Note the date the contract was signed, and the name and title of the person who signed on the client’s side.
If you have no signed contract, write “No written contract” and note any email or message exchange where the client agreed to the price and scope. An exchange of emails that includes “I agree to the proposal” can function as a contract.
Verify before you file: read each quoted clause back against the original, word for word, and confirm the signature date and the signer’s name and title match the contract.
Save the document as a PDF in your evidence folder and print a hard copy for your file.