Balancing Payment Law and Legal Definition

Balancing Payment is a payment, normally from one or more participants to another, to adjust participants’ proportionate shares of contributions that increases the value of the contributions of the payer and decreases the value of the contributions of the payee by the amount of the payment, in the context of CCA (Cost Contribution Arrangements).

A CCA is a framework agreed among business enterprises to share the costs and risks of developing, producing or obtaining assets, services, or rights, and to determine the nature and extent of the interests of each participant in those assets, services, or rights.