Provision in a contract that imposes a specified sum on the defaulting contracting party for a specified default. Penalty clauses are most often associated with Performance-Based agreements where a supplier gives the buyer a refund when they do not meet an SLA. Sometimes also referred to as service credits or malice payments.
Provision in a contract that imposes a specified sum on the defaulting contracting party for a specified default. Penalty clauses are most often associated with Performance-Based agreements where a supplier gives the buyer a refund when they do not meet an SLA. Sometimes also referred to as service credits or malice payments.