Legal Term: DISCOUNT

Definition: contracts. An allowance made upon prompt payment in the purchase of goods, it is also the interest allowed in advancing money upon bills of exchange, or other negotiable securities due at a future time And to discount, signifies the act of buying a bill of exchange, or promissory note for a less sum than that which upon its face, is payable. 2. Among merchants, the term used when a bill of exchange is transferred, is, that the bill is sold, and not that it is discounted. See Poth. De lUsure, n. 128 3 Pet. R. 40.

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