What does COD stand for in contract terms?

The term COD in contract terms stands for "Cash on Delivery." This is a payment method where the customer pays for the goods at the time of delivery rather than in advance. This arrangement can be beneficial for both buyers and sellers as it provides assurance to the customer that they will receive the goods before making payment, while also reducing the seller's risk of non-payment. Cash on delivery is commonly used in various industries, especially in scenarios involving direct sales, deliveries, and e-commerce transactions.

In the context of hospitality, understanding the payment terms such as COD can influence the way contracts are negotiated and fulfilled, ensuring both parties have clear expectations regarding payment methods and timing. This knowledge can help in preventing disputes and ensuring smoother transactions in the hospitality sector.