Daily method Sample Clauses

The "Daily method" clause defines how certain calculations or obligations are determined on a daily basis within a contract. Typically, this clause specifies that amounts such as interest, fees, or other accruals are to be calculated each day, often by dividing annual rates by the number of days in a year or by applying a set daily rate. For example, in a loan agreement, the daily method might be used to compute interest owed for each day the principal is outstanding. This approach ensures precise and fair allocation of amounts over time, particularly when obligations or entitlements do not align neatly with monthly or annual periods.