Define: Paid Into Court

Paid Into Court
Paid Into Court
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Quick Summary of Paid Into Court

“Paid into court” refers to a legal procedure where money or other assets are deposited with the court to settle a dispute or fulfil a financial obligation. This action is typically undertaken by a party involved in litigation who wishes to satisfy a debt, claim, or judgement. By paying funds into court, the party demonstrates their willingness to comply with legal requirements and ensures that the funds are available for distribution according to court orders. The court then holds the deposited funds until a decision is made regarding their disbursement, providing security and assurance to all parties involved in the legal proceedings.

What is the dictionary definition of Paid Into Court?
Dictionary Definition of Paid Into Court
adj. referring to money deposited with the clerk of the court by a person or entity who knows that the money is owed but does not know to whom they should pay it until the outcome of a lawsuit between two other parties is decided. In short, the party handing over the money is saying: "Here is the money. You two argue over it, but spare me the trouble and cost of the suit." Example: A contractor buys supplies from a hardware store on credit. The store is owned by two people who have dissolved their partnership and are fighting over who owns accounts receivable, including the funds owed by the contractor. The contractor knows he owes them money for his supplies, wants to meet his obligations, and wants to get rid of the debt. So the contractor gives what he thinks he owes the hardware store to the court to hold while the two former partners settle their differences.
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This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March 2024.

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