Quote Originally Posted by coqauvin View Post
Isn't that the same kind of concept as devaluing purchased equipment over time when accounting for a business' assets?
Depreciation has an expiration date too, you can't just write off 2% a month or whatever forever, eventually you hit salvage value and full depreciation on the books. Also depreciation is completely different but I just wanted to make that point. You get the business side of it I think, and as mutton said as long as you are clear up front about the terms and it isn't some kind of "fine print" thing, then the contract is voluntarily entered into by both parties that agreed to those terms. The ability to contract like that is pretty much cornerstone to everything in modern business.