Direct Payment Law and Legal Definition

A direct payment is one which is absolute and unconditional as to time, amount and the persons by whom and to whom it is to be made. A payment made directly to the obligee, not to an intermediary. A written instrument which provides for such payment is one which expresses those terms fully. [Ancient Order of Hibernians v. Sparrow, 29 Mont. 132, 136 (Mont. 1903)].