Document background
The Advance Payment Agreement is a crucial document used in Irish business transactions where one party needs to make payment to another party in advance of goods being delivered or services being performed. This agreement type is particularly common in large-scale projects, construction contracts, and manufacturing orders where significant upfront costs need to be funded. The document typically includes comprehensive security arrangements such as bank guarantees or other forms of security, detailed payment terms, clear conditions for the use of advanced funds, and specific recovery mechanisms. Under Irish law, this agreement must comply with various regulatory requirements, including financial services regulations, contract law, and where applicable, construction law. The agreement serves to protect both the party making the advance payment and the recipient by clearly defining their rights and obligations, while establishing robust security mechanisms and default remedies.
