Customer Overpayments Clause Samples
The Customer Overpayments clause defines how situations are handled when a customer pays more than the amount due under a contract. Typically, this clause outlines the process for identifying overpayments, notifying the customer, and either refunding the excess amount or applying it as a credit toward future invoices. By establishing clear procedures for managing overpayments, the clause helps prevent disputes and ensures that both parties understand their rights and obligations regarding excess payments.
Customer Overpayments. The Company will provide interest on customer overpayments that are not refunded within 30 days of the date the Company receives the overpayment. An overpayment is considered to have occurred when payment in excess of the correct charges for service is made because of erroneous Company billing. The customer will be issued reimbursement for the overpayment, plus interest, or, if agreed to by the customer, credit for the amount will be provided on the next regular Company bill. The rate of interest shall be the greater of the customer deposit interest rate or the Company's applicable Late Payment Charge. Interest shall be paid from the date when overpayment was made, adjusted for any changes in the deposit rate or late payment rate, and compounded monthly, until the date when the overpayment is refunded. The date when overpayment is considered to have been made will be the date on which the customer's overpayment was originally recorded to the customer's account by the Company.
Customer Overpayments. The Seller agrees that within thirty (30) days after the Closing, it shall send cash refunds to any customers of the Business in the amounts listed on Schedule 5.11 for which customer overpayments that have been retained by the Seller.
Customer Overpayments. 6.1 If the Company or any Group Company receives notice from any customer validly claiming that it overpaid for any services provided by the Group at any time before Completion with the result that such overpayment is refunded to such customer then the return of such overpayment (a "Repayment") shall first be set off against the combined total of (i) the overpayment provision included in the Completion Accounts and (ii) any amount recovered from debtors against which a provision is specifically included in the Completion Accounts provision for bad debt is in place at Completion (collectively, the "Overpayment Provision"). No Claim may be brought by the Buyer to recover an amount relating to any and all such Repayments until such time as the Overpayment Provision has been exhausted.
6.2 Nothing in paragraph 6.1 above shall in any way restrict the application of the other limitations on liability set out in this Schedule 7.
Customer Overpayments. (a) The Customer Overpayments Fund shall be held in escrow by the Escrow Agent and shall be specifically reserved for the payment by Purchaser of bona fide demands for refund of overpayments after the Closing by any customer set forth on Schedule 2.10 attached hereto (each a “Customer”), alleging that such Customer remitted excess payments to Seller prior to the Closing Date.
(b) Purchaser shall not take any action to suggest to a Customer that it may have a right to a refund for overpayments previously made by such Customer to Seller. In the event, however, that a Customer voluntarily makes such an unsolicited refund demand on Purchaser (a “Refund Demand”) Purchaser shall advise Seller in writing of such Refund Demand at least ten (10) days prior to honoring any such refund request during which ▇▇▇▇ ▇▇▇▇▇▇ may verify that it has not, in fact, already paid the amounts to which such customer is entitled.
(c) Amounts remaining in the Customer Overpayments Fund at the close of business on the second (2nd) anniversary of the Closing Date shall be paid by the Escrow Agent to Seller.