Checks, Drafts Clause Samples

The "Checks, Drafts" clause defines the rules and procedures governing the use, acceptance, and processing of checks and drafts as forms of payment under the agreement. Typically, this clause clarifies whether such instruments are considered conditional or final payment, outlines any requirements for their acceptance, and may specify the consequences if a check or draft is dishonored or returned unpaid. By establishing clear expectations for both parties regarding these payment methods, the clause helps prevent disputes over payment validity and ensures a consistent process for handling non-cash transactions.