Payable On Demand Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Payable On Demand, written in plain English, along with examples of how it is used.
What is Payable On Demand?
It refers to a note (promissory) which is payable at a time when the payee request for it.If a promise mentions a payment to be made at sight or demand, it needs to be fulfilled. Even if the promise or order does not state a time, it is payable on demand of the payee.
History and Meaning of Payable On Demand
Payable on Demand is a term commonly used in financial and legal contexts. It refers to a type of note, promissory or order that is payable immediately when the payee requests it, or at sight. This means that the individual or entity who owes the money must pay it back immediately upon demand, regardless of whether or not there was a specified deadline for payment in the original agreement.
This term has been a part of the legal and financial vocabulary for many years, and is commonly used in a variety of contexts, including lending and borrowing, business transactions, and more.
Examples of Payable On Demand
A cash deposit made into a bank account can be considered payable on demand, as the depositor can request to withdraw the money at any time.
A promissory note that states "payable on demand" means that the lender can request the loan to be repaid at any time, without providing advance notice.
A check written as "payable on demand" means that the recipient can cash it immediately or at any time, without any restrictions.
Legal Terms Similar to Payable On Demand
Demand note: It is a type of promissory note that is payable on demand when the lender requests it.
Sight draft: A document that orders the payment of funds by a financial institution, payable on demand or at "sight" of the document.
Acceleration clause: A provision in a contract or loan that allows a creditor to demand immediate payment of the entire outstanding balance if the debtor fails to keep up with their payments.