Paid Into Court Law and Legal Definition

The term ‘paid into court’ as used in legal parlance refers to money deposited with the clerk of the court by a person or entity who knows that the money is owed but does not know to whom they should pay it until the outcome of a lawsuit between two other parties is decided. The court holds the money till the dispute between the two parties is resolved and it is decided who is to receive the accounts receivable. For example, a firm collecting the rent has their partners fighting a case over dissolving the firm and dividing the property. In such case the tenant does not know whom to pay the rent. Therefore, the tenant can deposit the rent with the clerk of the court.