What type of purchase contract typically includes a payment schedule?

A purchase contract typically includes a payment schedule, as it outlines the terms and conditions agreed upon by the buyer and seller concerning the procurement of goods or services. This contract explicitly states the price to be paid, the terms regarding when payments are due, and any conditions that might affect the payment process.

In this context, a fixed-price contract may also have a payment schedule if the purchase involves a set price, but it is essential to recognize that not all fixed-price contracts inherently include a detailed payment schedule. Similarly, a service-level agreement often focuses more on the service quality and performance standards than on payment terms, and it may not detail a payment schedule explicitly. A time and materials contract specifies costs based on labor and materials used but generally emphasizes more variable costs rather than a structured payment schedule.

Choosing the purchase contract is most aligned with the broader range of scenarios that formalize how and when payments should be made, capturing the essence of contractual agreements in the procurement process.