Deferred consideration

deferred consideration: where part of the consideration (ie. purchase price) for an asset is payable at a later stage, rather than immediately upon the purchaser acquiring the asset; common in company law, in contracts for the sale and purchase of shares or businesses, where deferred consideration may be payable after a certain period of time, provided that certain conditions have been met within that time; for example, the relevant business has achieved certain revenue targets or other milestones, or that no warranty or indemnity claim events have arisen pursuant to the underlying share purchase agreement or business sale agreement.