The price due in exchange for goods may be paid by cash; by ready cash; by cash on delivery (abbr. C.O.D.)-viz. on delivery of the goods; cash against documents (which means payment to be effected on delivery of the document proving shipment, and by which the goods are represented); on term; by banker; by bill or by acceptance. Unless otherwise agreed, delivery of goods and payment of the price should be concurrent.
Sales by cash and by ready cash admit, however, of a certain respite, which is longer in the former case (usually 15 days) and shorter in the latter (3 or 5 days), according to the custom of the place and kind of the goods sold; sales by cash on delivery and cash against documents admit of none.
In such cases the price is to be handed or remitted on delivery of the goods or of shipping documents.
Payment by banker, or by acceptance, takes place for goods shipped for foreign parts, where there is no means of collecting the amount from the buyer. When payment is to be effected by banker, the seller delivers shipping documents of the goods forwarded to the banker of his place previously appointed by the buyer, and receives from him the amount of invoice.
As to payment by bill or by acceptance, it is effected by the buyer handing to the seller, against receipt of, the goods or of shipping documents, either a bill of exchange, whereby he orders another person to pay the amount, or a promissory note whereby he binds m himself to pay the money at some future time, or else by accepting in due form an order of payment drawn upon him by the seller.