Discount Law and Legal Definition

Discount is a set off or defalcation in an action. It is a reduction from the full amount or value of something.

Discount includes:

  • An allowance made upon prompt payment in the purchase of goods.
  • An interest allowed in advancing money upon bills of exchange, or other negotiable instruments due at a future date.
  • The act of buying negotiable instruments for a less sum than its face value.