Common use of Compensatory Purpose Clause in Contracts

Compensatory Purpose. The Parties intend that the Service Credits constitute compensation to Customer, and not a penalty. The Parties acknowledge and agree that Customer’s harm caused by Provider’s delayed delivery of the Support Services would be impossible or very difficult to accurately estimate as of the Effective Date, and that the Service Credits are a reasonable estimate of the anticipated or actual harm that might arise from Provider’s breach of its Service Level obligations.

Compensatory Purpose. The Parties intend that the Service Credits constitute compensation to Customer, and not a penalty. The Parties acknowledge and agree that Customer’s harm caused by Service Provider’s delayed delivery of the Support Services would be impossible or very difficult to accurately estimate as of the Effective Date, and that the Service Credits are a reasonable estimate of the anticipated or actual harm that might arise from Service Provider’s breach of its obligations under this SLA. Customer acknowledges and accepts that payment of the Service Level obligations.Credits set forth above in Section