Holdback/Pro-Ration Sample Clauses

The Holdback/Pro-Ration clause defines how certain payments or obligations are temporarily withheld or adjusted based on the proportion of time or performance completed. In practice, this means that a portion of funds—such as purchase price, fees, or rent—may be retained until specific conditions are met, or payments may be calculated based on the actual period of service or use, rather than a full term. This clause ensures that financial settlements are fair and accurately reflect the parties' actual entitlements or liabilities, preventing overpayment or underpayment when circumstances change or obligations are only partially fulfilled.