There are concepts that you need to know and are important no matter what type of contract you find yourself signing. What are these concepts and how do they impact your contract? In this movie, author Seth Polanksy explains what payment and invoicing terms are and how they impact the contract you could be signing.
- Payment and invoicing terms.…I'm going to get a little financial here,…so please bear with me.…Every company has a cost of money and a value of money.…Cost of money is what it would cost…the company to borrow money.…The value of money is the return you could make…if you invested it.…Money also has a time value that is usually expressed…as either net present value or discounted cash flow.…The time value of money takes into account the fact…that whoever in the relationship holds the money…gets the compounding benefit of that money,…just like you would get a compounding benefit…in a savings account.…
Simply put, payment terms are all about…the time value of money.…The longer you hold it, the more benefit you get.…The sooner you have to pay it,…or the longer you have to wait for a supplier to pay you,…the less benefit to you.…So what does this mean for you?…As a creative, you're often at the mercy…of larger companies or organizations.…Unless your payment terms clause has some teeth,…which is to say penalties for late payments,…
Disclaimer: This course is taught by an attorney and addresses US law concepts that may not apply in all countries. Neither LinkedIn (including Lynda.com) nor the instructor represents you and they are not giving legal advice. The information conveyed through this course is akin to a college or law school course; it is not intended to give legal advice, but instead to communicate information to help viewers understand the basics of the topic presented. The views (and legal interpretations) presented in this course do not necessarily represent the views of LinkedIn or Lynda.com.
- Why do you need a contract?
- Types of contracts
- Asking for an NDA
- Work-for-hire and contractor agreements
- Proposals, quotes, and statements of work
- Licensing agreements
- Delivery and payment terms