Balance Due Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Balance Due, written in plain English, along with examples of how it is used.
What is Balance Due?
(n) Balance Due is the principle amount outstanding on a promissory note or financial instrument to be payable as on the date. It Excludes the interest portion when the amount said is inclusive of principle and interest.
History and Meaning of Balance Due
Balance Due refers to the amount of money that is owed on a promissory note or financial instrument. It is the principal amount that has not yet been paid and excludes any interest that may be accrued. The term can be used in a variety of legal and financial contexts.
Examples of Balance Due
- John borrowed $10,000 from the bank and has paid back $5,000. The balance due on the loan is $5,000.
- Mary purchased a car for $20,000 and took out a loan for $15,000. The balance due on the car is $15,000.
- Tom owes $500 on a credit card and has made a $100 payment. The balance due is now $400.
- ABC Corporation received an invoice for $10,000 from a supplier. They paid $5,000 upfront and the balance due is $5,000.
- Sarah owed $1,000 in taxes and made a partial payment of $500. The balance due is $500.
Legal Terms Similar to Balance Due
- Principal - The principal is the amount of money that is borrowed or invested.
- Interest - Interest is the additional amount of money that is paid on a loan or investment for the use of the money.
- Outstanding balance - The outstanding balance is the total amount of debt that has not yet been paid.