We all make a verbal or written contract in our lives. Some are made to render a commitment to a person, then there are those contracts for goods and services and other things such as property. As we all know, not all deals push through and there are those who renegade on a written contract. People do change their mind but it is not that easy if there is a written contract as there are laws that make it possible for a payment transaction to be upheld.
There are people who fail to meet their commitments. It is not at all times that it is possible to make a payment for various reasons. But, there are dire consequences when payments are not made. One of these is when mortgage payments for a house are skipped and after a few non-payments, the property can be foreclosed by the borrower’s bank.
There are contracts that are written and there are penalties for failing to meet a payment transaction at the due date. At times, there are fines imposed for late payments, and then there are pull-outs because of foreclosure of a loan for a vehicle. There are also deals that are made verbally and when payments are not made after the item is delivered, it is to the dismay of the one who gave the product or service.
Those failed transactions
At one time or another, deals fail to push through. When a contract is not followed, it is difficult for someone to make a person pay, especially if the reasons are valid, such as illness or bankruptcy. There are other penalties that may come about because of failure to make good a payment instrument such as a check. For bouncing checks, in some countries, the penalties can be severe enough to bring about a warrant of arrest and jail time.
Word of honor
There are payment transactions that are based on a verbal agreement. For reputation building, one has to be able to keep their word of honor. There is typically no security that is given to the other person after the goods or the services are delivered, it is just the commitment made that the payment will be done at a later time. Though it is difficult to impose penalties on those who break their word, there are ways that the law can help by filing a complaint with the police.
When before, the most common way to get a delivery was for the payment method to be that of cash-on-delivery, nowadays, it is not commonly done in developed nations. The online payment is sent after ordering, which is a pay-before delivery type of transaction. This is to the advantage of online merchants who may experience difficulty collecting payments using cash on delivery. The buyer has to wait for the product or service to be delivered. For those who want to ensure that their payment transaction is made good, it is best to only purchase from reputable sites.