Graduated Payments Sample Clauses

The Graduated Payments clause establishes a payment schedule where the amounts due increase incrementally over time. Typically, this means that initial payments are set at a lower rate, with periodic increases according to a predetermined formula or timeline, such as annual percentage increases. This structure is often used in loan agreements or service contracts to accommodate parties who expect their ability to pay to improve in the future. The core function of this clause is to provide financial flexibility at the outset while ensuring full payment over the term, thereby making obligations more manageable for the payer in the early stages.