Commitments and Penalties Clause Samples
The 'Commitments and penalties' clause defines the obligations that parties must fulfill under the agreement and outlines the consequences for failing to meet these obligations. Typically, this clause specifies the actions or standards required from each party and details the penalties—such as financial fines, service reductions, or other remedies—that will be imposed if commitments are not honored. By clearly establishing both the expected commitments and the repercussions for non-compliance, this clause ensures accountability and provides a structured mechanism to address breaches, thereby reducing disputes and encouraging adherence to the contract.
Commitments and Penalties. If the Services do not commence at the Effective Date specified in the Agreement, provided the delay was not exclusively caused by WOAH, WOAH will have the right to either renegotiate the terms of the Agreement or terminate it with immediate effect. If the Services are not provided within the period specified under the Agreement, provided the delay is attributable to Service Provider and was not caused by a Force Majeure event (as defined in article 15) nor exclusively by WOAH, WOAH shall be entitled to ask Service Provider penalties for delay amounting to 0.5% for each working day of delay after five consecutive working days of delay, capped at a global amount of thirty percent (30%) of the overall amount payable under the Agreement. If the Services are provided in a timely manner but are nevertheless partially completed or do not comply with the standards or requirements set out in the Agreement, and provided this was not exclusively caused by WOAH, WOAH shall have the right to ask for compensation of any loss and expenses that may be suffered as a result, or to request that Service Provider complete and/or correct the Services in an expedited manner to ensure compliance with the Agreement.
Commitments and Penalties