token payment

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token payment

A token payment is made to secure the reservation.

Definition

Noun: A small payment made to acknowledge that a larger debt or obligation exists, without being a substantial installment toward settling it. It is a symbolic gesture that recognizes the obligation while the remainder is deferred or negotiated.

Usage

A "token payment" is used to formally recognize a financial obligation, often when the payer cannot currently afford the full amount. It demonstrates good faith and can be part of a payment arrangement.

Examples
  • The tenant made a token payment of $50 to show good faith while negotiating a payment plan for the back rent.
  • As a token payment on the large debt, the company sent a check for one dollar.
  • The agreement stated that an initial token payment was required to keep the contract active.
Advanced Usage
  • In legal or contractual contexts, a token payment (sometimes "peppercorn" payment) can be used to make a binding contract, where the exchange of even a nominal sum validates the agreement.
  • The phrase can be used metaphorically to describe any small, symbolic action taken to acknowledge a much larger issue or debt, not necessarily financial.
Variants and Related Words
  • Token amount (noun phrase): A nominal or symbolic sum of money.
  • Nominal payment (noun phrase): A payment that is very small compared to the actual value or debt, often used similarly to "token payment."
  • Good faith payment (noun phrase): A payment made to demonstrate sincere intention to fulfill an obligation.
Synonyms
  • Nominal payment
  • Symbolic payment
  • Peppercorn (in legal contexts)
  • Good faith payment
Antonyms
  • Full payment
  • Substantial payment
  • Installment (when it represents a significant portion of the debt)
Related Phrases
  • In token of: As a symbol or acknowledgment of something.
    • He gave her a ring in token of his affection.
  • By the same token: For the same reasons; in a similar way.
    • The material is strong and, by the same token, quite heavy.
token payment

A token payment is made to secure the reservation.

Noun
  1. a small payment made in acknowledgement of an obligation