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Accrued Interest
Commercial Contract
Accrued Interest
Where the parties agree to accrue interest upon the occurrence of a defined event (e.g., accrual of interest upon failure to pay when due), the parties should agree on the applicable interest rate or how such rate should be calculated:
Exemplar C2-1
Time is of the essence with respect to all payments due hereunder. Interest at a per annum rate of three percent (3%) over the current U.S. prime rate (as quoted by the Wall Street Journal on the date payment is due) or the maximum rate permitted by law, whichever is lower, shall accrue on any amount due hereunder from the first day payment becomes due until the date of payment.
Exemplar C2-2
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