Discount Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Discount, written in plain English, along with examples of how it is used.
What is Discount?
n. Less payment than the full amount due on the price of goods or services or a promissory note. Discounts are by agreement and indicate a situation which the holder of the long-term promissory note or material goods would sell it/them for cash which is less than face value.
History and Meaning of Discount
The concept of discounting can be traced back to as early as the 13th century. The term "discount" is derived from the Latin word "discomputare", which means to deduct or subtract. Discount refers to a reduction from the full price of a good or service.
Discounts are commonly offered in the business world as a way to incentivize customers to make a purchase. They can also be used as a tool for companies to clear out old inventory or to increase sales during slow periods.
Examples of Discount
- A store advertises a 20% discount on all items in the store for a limited time.
- An individual negotiates a discount with their contractor for a home renovation project.
- A manufacturer offers a discount to a distributor who buys in bulk.
Legal Terms Similar to Discount
- Rebate: A refund of a portion of the purchase price.
- Credit: An amount subtracted from the total amount owed.
- Allowance: A reduction in price for a particular reason or circumstance.