Offsets for Claims Clause Samples
The "Offsets for Claims" clause allows one party to reduce the amount they owe to the other by subtracting any amounts that the other party owes them under the same agreement. In practice, if Party A has a claim for payment against Party B, but Party B also has a valid claim against Party A, the amounts can be netted so that only the difference is paid. This clause streamlines the settlement of mutual obligations, preventing unnecessary payments back and forth and reducing the risk of overpayment or double recovery.
Offsets for Claims. If, after Project completion, any claim is made by the Department resulting from an audit or for work or services performed pursuant to this Agreement, the Department may offset such amount from payments due for work or services done under any agreement that it has with the Agency owing such amount if, upon written demand, payment of the amount is not made within 60 days to the Department. Offsetting any amount pursuant to this paragraph shall not be considered a breach of contract by the Department.