When it comes to legal terminology, the phrase due and owing can be a bit confusing—especially if you’re unfamiliar with the legal world! At its most basic definition, due and owing it for something to be paid. In this context, it often applies to debt or other funds that need to be settled.
For example, if you have a loan from a bank or other lender, they will likely phrase their payment terms as “due and owing.” This means that you are required to pay back the loaned funds at a specified date and time, and that your loan will be considered delinquent if it’s not done. This phrase is also often used in court cases, where one party may legally be held responsible for paying another party for something.
Put simply, when something is due and owing, the other party is legally obliged to pay it. It’s important to note, however, that due and owing does not necessarily imply debt. In some cases, due and owing could refer to someone who is simply owed money for services rendered or goods purchased.
No Matter What, ‘Due and Owing’ Binding When a Legal Agreement Is Reached
Whether you’re discussing debt or another form of payment, due and owing is a binding term. If two parties have reached a legal agreement, the one who is due and owing must meet the terms of the agreement to the other party. Failure to do this could lead to fines or court appearances. This is why it’s so important to understand the terms of any contract or agreement before signing it.
Due and owing is a commonly used phrase in the legal context, but it can be confusing due to its varied uses. When you’re engaging in legal activities, make sure you understand the meaning of this phrase—as well as the other commonly used legal terminology—before signing or making any agreements.