Deduction clause: Copy, customize, and use instantly
Introduction
A deduction clause defines the conditions under which amounts may be deducted from payments due under the agreement. This can apply to various situations, including non-performance, incomplete work, or other issues where the agreed terms have not been met. It ensures that the paying party can withhold certain amounts to cover any deficiencies or obligations unmet by the receiving party.
Below are deduction clause templates tailored to various scenarios. Copy the one you need, customize it, and add it to your contract.
Standard deduction clause
This clause allows for standard deductions.
The [paying party] may deduct amounts from any payments due to the [receiving party] under this agreement if the [receiving party] fails to meet any of the obligations outlined in [insert section]. Deductions may include, but are not limited to, penalties for late performance, defective work, or failure to meet specified standards.
Deduction for incomplete work clause
This clause applies to deductions when work is incomplete.
The [paying party] may deduct from the payments due to the [receiving party] if the [receiving party] fails to complete the work as described in [insert section] by the agreed-upon deadlines. The amount to be deducted will be proportional to the amount of work left incomplete.
Deduction for non-performance clause
This clause applies when the receiving party fails to perform as required.
If the [receiving party] fails to perform any obligations under this agreement, the [paying party] may deduct an amount equal to the value of the unperformed obligations from any payments due. Deductions will be calculated based on the proportion of work not completed or delivered.
Deduction for defective work clause
This clause applies when work is defective.
The [paying party] may deduct amounts from the payments due to the [receiving party] if the goods or services provided are found to be defective or non-compliant with the specifications outlined in [insert section]. The deduction will be based on the cost of correcting the defect or non-compliance.
Deduction for late performance clause
This clause allows deductions for late performance.
The [paying party] may deduct [insert percentage] from the total amount due for each [insert period, e.g., "day" or "week"] that the [receiving party] fails to meet the performance deadlines or milestones set out in [insert section]. Deductions will be made for the duration of the delay.
Deduction for failure to meet quality standards clause
This clause applies when quality standards are not met.
If the [receiving party] fails to meet the quality standards set forth in [insert section], the [paying party] may deduct an amount equivalent to the cost of bringing the deliverables up to the required standard. The amount of the deduction will be determined based on the cost of rectification.
Deduction for taxes and liabilities clause
This clause applies to deductions for taxes or liabilities.
The [paying party] may deduct any taxes, penalties, or other liabilities that the [receiving party] is responsible for under applicable laws or regulations from any payments due under this agreement. The amount deducted will be based on the liabilities or taxes owed.
Deduction for liquidated damages clause
This clause applies to liquidated damages.
If the [receiving party] fails to meet any contractual deadlines, terms, or conditions, the [paying party] may deduct liquidated damages from payments due as specified in [insert section]. The amount of liquidated damages will be calculated in accordance with the terms outlined in the agreement.
Deduction for failed inspections clause
This clause applies when goods or services fail inspection.
The [paying party] may deduct from the payments due if the [receiving party]'s goods or services fail to pass the required inspection or testing as specified in [insert section]. Deductions will reflect the costs incurred to address the failed inspection or testing.
Deduction for early termination clause
This clause applies if the agreement is terminated early.
In the event of early termination of this agreement, the [paying party] may deduct from any amounts due to the [receiving party] any costs incurred as a result of the early termination, including but not limited to administrative, legal, and operational costs.
Deduction for failure to meet deadlines clause
This clause applies when deadlines are missed.
If the [receiving party] misses any deadlines or agreed-upon milestones in the performance of this agreement, the [paying party] may deduct [insert percentage] of the amount due for each missed deadline. The deduction will be applied for each day the deadline is exceeded.
Deduction for non-compliance with regulatory requirements clause
This clause applies to non-compliance with regulations.
The [paying party] may deduct from payments due to the [receiving party] if the [receiving party] fails to comply with any applicable laws, regulations, or industry standards as required under this agreement. The amount deducted will be based on the costs incurred by the [paying party] to rectify the non-compliance.
Deduction for excessive administrative costs clause
This clause applies when administrative costs are higher than agreed.
If the [receiving party]'s actions lead to excessive administrative costs for the [paying party], the [paying party] may deduct an amount equal to those costs from any payments due under this agreement. Such costs may include but are not limited to, additional processing, coordination, or oversight required due to the [receiving party]'s actions.
Deduction for breach of confidentiality clause
This clause applies to deductions for breach of confidentiality.
The [paying party] may deduct from payments due to the [receiving party] in the event of a breach of confidentiality or non-disclosure obligations outlined in [insert section]. The deduction will be proportional to the damages or costs incurred due to the breach.
Deduction for late submission of reports clause
This clause applies when reports are not submitted on time.
The [paying party] may deduct from any payments due to the [receiving party] if the [receiving party] fails to submit required reports, documentation, or progress updates by the deadlines specified in [insert section]. The amount deducted will reflect the delay caused by the failure to submit the required reports.
Deduction for failure to provide required warranties clause
This clause applies when warranties are not provided.
The [paying party] may deduct from the payments due if the [receiving party] fails to provide the required warranties or guarantees as outlined in [insert section]. The deduction will be proportional to the value of the warranty not provided.
Deduction for missed service levels clause
This clause applies to missed service levels.
If the [receiving party] fails to meet the agreed-upon service levels or performance standards outlined in [insert section], the [paying party] may deduct a specified percentage from any payments due for each service level failure. The deduction amount will reflect the severity of the failure.
Deduction for failure to rectify issues clause
This clause applies when issues are not rectified in time.
The [paying party] may deduct from the amounts due if the [receiving party] fails to promptly correct any issues or deficiencies identified during the performance of their obligations. The deduction will be based on the cost of rectification or the impact of the delay.
Deduction for failure to achieve contractual targets clause
This clause applies when contractual targets are not met.
The [paying party] may deduct from the payments due to the [receiving party] if the agreed-upon contractual targets or goals are not met, as outlined in [insert section]. The deduction amount will be proportional to the target shortfall.
Deduction for excessive project delays clause
This clause applies when project delays exceed agreed timelines.
The [paying party] may deduct from the payments due if the [receiving party] causes delays that exceed the agreed project timelines. The amount deducted will be determined based on the duration and impact of the delay.
Deduction for failure to meet delivery schedules clause
This clause applies when delivery schedules are not met.
The [paying party] may deduct from payments due if the [receiving party] fails to meet the delivery schedules outlined in [insert section]. Deductions will be based on the extent of the delay and the corresponding value of the deliverables.
Deduction for non-approval of subcontractors clause
This clause applies when subcontractors are not approved.
The [paying party] may deduct from the payments due if the [receiving party] engages subcontractors without prior approval from the [disclosing party] or if subcontracted work does not meet the agreed-upon standards. The deduction will reflect the costs incurred by the [paying party] due to the unapproved subcontracting.
Deduction for excessive administrative fees clause
This clause applies when administrative fees are too high.
The [paying party] may deduct from the payments due if the [receiving party] charges administrative fees that exceed the agreed-upon limits outlined in [insert section]. The deduction will be equal to the amount exceeding the agreed fee limits.
Deduction for unresolved customer complaints clause
This clause applies when customer complaints remain unresolved.
The [paying party] may deduct from payments due if any customer complaints related to the [receiving party]'s goods or services remain unresolved. The amount deducted will reflect the impact of the unresolved complaints on the [paying party]'s business operations.
Deduction for failure to meet compliance standards clause
This clause applies when compliance standards are not met.
The [paying party] may deduct from payments due if the [receiving party] fails to meet regulatory or industry compliance standards outlined in [insert section]. The deduction will reflect the cost of achieving compliance or the impact of non-compliance on the [paying party]'s business.
Deduction for unapproved changes in scope clause
This clause applies when scope changes are unapproved.
The [paying party] may deduct from the payments due if the [receiving party] makes any changes to the scope of work or deliverables without prior approval from the [disclosing party]. The deduction will be based on the value of the unapproved changes.
Deduction for non-fulfillment of contract obligations clause
This clause applies when obligations are not fulfilled.
The [paying party] may deduct from the payments due if the [receiving party] fails to fulfill any obligations specified in the contract. The amount deducted will be proportional to the value of the unfulfilled obligation.
Deduction for failure to provide adequate customer support clause
This clause applies when customer support is insufficient.
The [paying party] may deduct from the payments due if the [receiving party] fails to provide adequate customer support as outlined in [insert section]. The deduction will reflect the cost of securing alternative support or the impact of insufficient support on customer satisfaction.
Deduction for failure to meet environmental standards clause
This clause applies when environmental standards are not met.
The [paying party] may deduct from the payments due if the [receiving party] fails to meet the environmental standards and sustainability criteria outlined in [insert section]. The deduction will reflect the cost of rectifying any environmental non-compliance.
Deduction for failure to provide timely invoices clause
This clause applies when invoices are not submitted on time.
The [paying party] may deduct from the payments due if the [receiving party] fails to submit invoices in accordance with the timelines set out in [insert section]. The deduction will be proportional to the delay in submission.
Deduction for breach of intellectual property rights clause
This clause applies to breaches of intellectual property rights.
The [paying party] may deduct from the payments due if the [receiving party] breaches any intellectual property rights, including copyright, trademarks, or patents, in relation to the deliverables. The amount deducted will be proportional to the damages incurred by the breach.
Deduction for failure to meet payment terms clause
This clause applies to failure to adhere to payment terms.
The [paying party] may deduct a specified percentage from the payments due if the [receiving party] fails to meet the payment terms as outlined in [insert section]. The deduction will apply for each day or week that the payment is overdue.
Deduction for non-compliance with performance targets clause
This clause applies when performance targets are not met.
The [paying party] may deduct from payments due if the [receiving party] fails to meet the performance targets, KPIs, or milestones outlined in [insert section]. The deduction will be based on the percentage shortfall of the target.
Deduction for failure to provide post-delivery support clause
This clause applies when post-delivery support is not provided.
The [paying party] may deduct from the payments due if the [receiving party] fails to provide the post-delivery support or maintenance services as outlined in [insert section]. The amount deducted will reflect the cost of procuring alternative support services.
Deduction for non-fulfillment of deadlines clause
This clause applies to missed deadlines.
The [paying party] may deduct from payments due if the [receiving party] fails to meet any deadlines or timelines specified in [insert section]. Deductions will be proportional to the delay in meeting the deadline.
Deduction for failure to meet product specifications clause
This clause applies when product specifications are not met.
The [paying party] may deduct from payments due if the products delivered by the [receiving party] do not meet the specifications and requirements outlined in [insert section]. The deduction will be based on the cost of modifying or replacing the non-conforming products.
Deduction for late submission of deliverables clause
This clause applies when deliverables are not submitted on time.
The [paying party] may deduct from payments due if the [receiving party] fails to submit deliverables by the agreed-upon deadlines. The deduction will be a percentage of the total payment for each day of delay.
Deduction for breach of confidentiality clause
This clause applies to confidentiality breaches.
The [paying party] may deduct from the payments due if the [receiving party] breaches the confidentiality obligations set forth in [insert section]. The deduction will reflect the cost of remedying the breach or compensating the affected party.
Deduction for non-delivery of required documentation clause
This clause applies when required documentation is not provided.
The [paying party] may deduct from payments due if the [receiving party] fails to deliver the required documentation, such as reports, certifications, or permits, as outlined in [insert section]. Payment will be withheld until the necessary documentation is provided.
Deduction for failure to meet customer satisfaction targets clause
This clause applies when customer satisfaction targets are not met.
The [paying party] may deduct from payments due if the [receiving party] fails to meet the agreed-upon customer satisfaction levels or feedback scores outlined in [insert section]. The deduction will be proportional to the shortfall in customer satisfaction.
Deduction for failure to meet delivery deadlines clause
This clause applies when delivery deadlines are missed.
The [paying party] may deduct from payments due if the [receiving party] fails to deliver the agreed goods or services by the deadlines specified in [insert section]. The amount of the deduction will be based on the delay and impact on the [paying party]'s operations.
Deduction for incomplete documentation clause
This clause applies when documentation is incomplete.
The [paying party] may deduct from payments due if the [receiving party] submits incomplete or incorrect documentation required under the agreement. The deduction will be proportional to the extent of the missing or incorrect information.
Deduction for non-compliance with quality assurance clause
This clause applies when quality assurance standards are not met.
The [paying party] may deduct from the payments due if the [receiving party]'s goods or services fail to meet the agreed-upon quality assurance standards as specified in [insert section]. The deduction will reflect the cost of rectifying the quality issues.
Deduction for failure to maintain required inventory levels clause
This clause applies when inventory levels are not maintained as agreed.
The [paying party] may deduct from payments due if the [receiving party] fails to maintain the agreed-upon inventory levels as outlined in [insert section]. The amount deducted will reflect the cost of securing additional inventory.
Deduction for unapproved cost overruns clause
This clause applies when cost overruns occur without approval.
The [paying party] may deduct from payments due if the [receiving party] incurs cost overruns without prior written approval. The deduction will be equal to the amount by which the actual costs exceed the agreed-upon budget.
Deduction for non-compliance with health and safety regulations clause
This clause applies when health and safety standards are not met.
The [paying party] may deduct from the payments due if the [receiving party] fails to comply with health and safety regulations applicable to the performance of the agreement. The deduction will reflect the cost of addressing the non-compliance.
Deduction for late submission of reports clause
This clause applies when reports are submitted late.
The [paying party] may deduct from payments due if the [receiving party] fails to submit required reports, including financial statements, progress updates, or other documentation, by the agreed-upon deadlines. The deduction will be proportional to the delay.
Deduction for failure to meet contractually agreed performance metrics clause
This clause applies when performance metrics are not achieved.
The [paying party] may deduct from the payments due if the [receiving party] fails to meet the performance metrics specified in [insert section]. The deduction will be based on the percentage by which the performance metrics are not met.
Deduction for failure to obtain required permits clause
This clause applies when required permits are not obtained.
The [paying party] may deduct from the payments due if the [receiving party] fails to obtain the necessary permits or licenses required to perform under this agreement. The deduction will reflect the costs incurred by the [paying party] to secure the required permits.
Deduction for breach of warranty clause
This clause applies to breaches of warranty.
The [paying party] may deduct from payments due if the [receiving party] breaches any warranty or guarantee provided under this agreement. The deduction will be proportional to the damages incurred by the [paying party] due to the breach.
Deduction for failure to comply with subcontracting terms clause
This clause applies when subcontracting terms are violated.
The [paying party] may deduct from payments due if the [receiving party] subcontracts any part of the work without the prior written approval of the [paying party], or if subcontractors do not meet the required standards. The deduction will reflect the cost of rectifying the issue.
Deduction for failure to meet sustainability targets clause
This clause applies when sustainability targets are not met.
The [paying party] may deduct from payments due if the [receiving party] fails to meet the sustainability targets outlined in [insert section]. The deduction will be based on the cost of addressing the sustainability shortfall.
Deduction for failure to provide training clause
This clause applies when required training is not provided.
The [paying party] may deduct from payments due if the [receiving party] fails to provide the required training or educational materials as outlined in [insert section]. The deduction will be proportional to the value of the unfulfilled training requirements.
Deduction for failure to meet contract performance standards clause
This clause applies when performance standards are not met.
The [paying party] may deduct from payments due if the [receiving party] fails to meet the performance standards set forth in [insert section]. The amount of the deduction will be based on the degree of non-compliance with the agreed standards.
Deduction for failure to meet financial reporting obligations clause
This clause applies when financial reporting obligations are not met.
The [paying party] may deduct from payments due if the [receiving party] fails to provide timely and accurate financial reports or statements as required under the terms of this agreement. The deduction will reflect the extent of the reporting failure.
Deduction for failure to comply with service level agreements (SLAs) clause
This clause applies when service levels are not met.
The [paying party] may deduct from payments due if the [receiving party] fails to meet the service level agreements (SLAs) specified in [insert section]. The deduction will be calculated based on the severity and duration of the SLA breach.
Deduction for unapproved modifications to deliverables clause
This clause applies when deliverables are modified without approval.
The [paying party] may deduct from payments due if the [receiving party] makes modifications to the deliverables without obtaining prior written approval from the [paying party]. The deduction will reflect the cost of any unapproved changes.
Deduction for failure to maintain adequate insurance coverage clause
This clause applies when insurance coverage is insufficient.
The [paying party] may deduct from payments due if the [receiving party] fails to maintain the required insurance coverage as specified in [insert section]. The deduction will reflect the costs incurred to obtain adequate coverage or rectify the situation.
Deduction for non-fulfillment of agreed-upon timelines clause
This clause applies when timelines are not met.
The [paying party] may deduct from payments due if the [receiving party] fails to meet the deadlines or timelines established in [insert section]. The deduction will be based on the duration of the delay and the impact on the project.
Deduction for failure to meet compliance requirements clause
This clause applies when compliance requirements are not met.
The [paying party] may deduct from payments due if the [receiving party] fails to meet any compliance requirements specified in [insert section], including regulatory or industry-specific standards. The deduction will be proportional to the extent of non-compliance.
Deduction for incomplete or inaccurate reporting clause
This clause applies when reports are incomplete or inaccurate.
The [paying party] may deduct from payments due if the [receiving party] submits incomplete or inaccurate reports or documentation as outlined in [insert section]. The deduction will be based on the costs to rectify or complete the reports.
Deduction for failure to meet agreed-upon project scope clause
This clause applies when the project scope is not fully met.
The [paying party] may deduct from payments due if the [receiving party] fails to meet the agreed-upon scope of the project as detailed in [insert section]. The deduction will be proportional to the incomplete or unfulfilled elements of the scope.
Deduction for failure to address customer complaints clause
This clause applies when customer complaints are not addressed.
The [paying party] may deduct from payments due if the [receiving party] fails to address customer complaints or feedback in a timely and satisfactory manner as outlined in [insert section]. The deduction will be based on the severity and volume of unresolved complaints.
Deduction for non-fulfillment of agreed warranties clause
This clause applies when warranty obligations are not met.
The [paying party] may deduct from payments due if the [receiving party] fails to fulfill warranty obligations as set forth in [insert section]. The deduction will reflect the costs to replace or repair the defective products or services covered under the warranty.
Deduction for failure to meet regulatory reporting deadlines clause
This clause applies when regulatory reporting deadlines are missed.
The [paying party] may deduct from payments due if the [receiving party] fails to submit required regulatory reports by the agreed-upon deadlines. The deduction will be based on the delay and the potential penalties incurred due to non-compliance.
Deduction for incomplete performance audits clause
This clause applies when performance audits are not fully completed.
The [paying party] may deduct from payments due if the [receiving party] fails to complete the performance audits required under [insert section]. The deduction will reflect the cost of conducting the audit or addressing any shortcomings.
Deduction for failure to meet inventory management requirements clause
This clause applies when inventory management standards are not met.
The [paying party] may deduct from payments due if the [receiving party] fails to meet the inventory management requirements outlined in [insert section]. The deduction will be based on the costs incurred to rectify any inventory management issues.
Deduction for failure to deliver reports in agreed format clause
This clause applies when reports are not delivered in the agreed format.
The [paying party] may deduct from payments due if the [receiving party] delivers reports in a format that is not consistent with the agreed-upon specifications in [insert section]. The deduction will reflect the cost of converting or adjusting the reports to the correct format.
Deduction for missed contractual obligations clause
This clause applies when the receiving party misses contractual obligations.
The [paying party] may deduct from payments due if the [receiving party] fails to fulfill any of the obligations outlined in this agreement. The deduction will be proportional to the value of the unfulfilled obligation.
Deduction for failure to adhere to branding guidelines clause
This clause applies when branding guidelines are not adhered to.
The [paying party] may deduct from payments due if the [receiving party] fails to comply with the branding guidelines specified in [insert section]. The deduction will reflect the cost of correcting any deviations from the brand standards.
Deduction for failure to achieve sales targets clause
This clause applies when sales targets are not met.
The [paying party] may deduct from payments due if the [receiving party] fails to meet the sales targets outlined in [insert section]. The deduction will be based on the shortfall from the target sales performance.
Deduction for non-compliance with safety standards clause
This clause applies when safety standards are not followed.
The [paying party] may deduct from payments due if the [receiving party] fails to adhere to the safety standards specified in [insert section]. The deduction will reflect the costs incurred to address safety non-compliance or the risk of non-compliance.
Deduction for incomplete contract deliverables clause
This clause applies when contract deliverables are not completed.
The [paying party] may deduct from payments due if the [receiving party] does not complete the deliverables specified in [insert section] in a timely or satisfactory manner. The deduction will reflect the incomplete nature of the deliverables.
Deduction for failure to meet marketing commitments clause
This clause applies when marketing commitments are not met.
The [paying party] may deduct from payments due if the [receiving party] fails to meet the agreed-upon marketing commitments, including campaign execution, content delivery, or advertisement placement as outlined in [insert section]. The deduction will be proportional to the scope of the unmet commitment.
Deduction for failure to provide after-sales support clause
This clause applies when after-sales support is not provided.
The [paying party] may deduct from payments due if the [receiving party] fails to provide the agreed-upon after-sales support as detailed in [insert section]. The deduction will reflect the cost of obtaining alternative support services.
Deduction for failure to maintain confidentiality clause
This clause applies when confidentiality is breached.
The [paying party] may deduct from payments due if the [receiving party] breaches the confidentiality obligations outlined in [insert section]. The deduction will reflect the cost incurred to address the breach and mitigate its impact.
Deduction for failure to meet project scope clause
This clause applies when the project scope is not fully met.
The [paying party] may deduct from payments due if the [receiving party] fails to meet the agreed-upon scope of work, as detailed in [insert section]. The deduction will reflect the value of the incomplete or unfulfilled work.
Deduction for unsatisfactory service delivery clause
This clause applies when services delivered are unsatisfactory.
The [paying party] may deduct from payments due if the [receiving party]'s service delivery does not meet the quality standards or requirements outlined in [insert section]. The deduction will be proportional to the value of the unsatisfactory service.
Deduction for non-compliance with insurance requirements clause
This clause applies when required insurance is not provided.
The [paying party] may deduct from payments due if the [receiving party] fails to maintain the required insurance coverage as specified in [insert section]. The deduction will reflect the cost incurred to obtain the necessary coverage.
Deduction for unapproved price increases clause
This clause applies when prices are increased without approval.
The [paying party] may deduct from payments due if the [receiving party] increases the price of goods or services without prior approval from the [disclosing party]. The deduction will be equal to the amount of the unapproved price increase.
Deduction for failure to meet technical specifications clause
This clause applies when technical specifications are not met.
The [paying party] may deduct from payments due if the goods or services delivered by the [receiving party] fail to meet the technical specifications or requirements outlined in [insert section]. The deduction will reflect the cost of correcting the specifications or providing the correct items.
Deduction for failure to meet regulatory compliance clause
This clause applies when regulatory compliance is not met.
The [paying party] may deduct from payments due if the [receiving party] fails to comply with any regulatory requirements, including licensing, safety standards, or other legal obligations, as outlined in [insert section]. The deduction will be based on the costs incurred to achieve compliance.
Deduction for failure to meet delivery requirements clause
This clause applies when delivery requirements are not met.
The [paying party] may deduct from payments due if the [receiving party] fails to meet the delivery requirements, including deadlines, quantities, and packaging standards, as outlined in [insert section]. The deduction will reflect the cost of correcting the delivery issues.
Deduction for breach of contract terms clause
This clause applies when the contract terms are breached.
The [paying party] may deduct from payments due if the [receiving party] breaches any terms of this agreement, including non-performance, late delivery, or incomplete work. The deduction will reflect the damages or costs incurred by the [paying party] as a result of the breach.
Deduction for unsatisfactory product quality clause
This clause applies when product quality is unsatisfactory.
The [paying party] may deduct from payments due if the products delivered by the [receiving party] do not meet the quality standards specified in [insert section]. The deduction will be based on the cost of replacing or rectifying the unsatisfactory products.
Deduction for failure to meet customer service standards clause
This clause applies when customer service standards are not met.
The [paying party] may deduct from payments due if the [receiving party] fails to meet the customer service standards outlined in [insert section]. The deduction will reflect the cost of obtaining alternative customer service solutions.
Deduction for non-compliance with delivery schedule clause
This clause applies when the delivery schedule is not adhered to.
The [paying party] may deduct from payments due if the [receiving party] fails to deliver the goods or services by the scheduled deadlines as specified in [insert section]. The deduction will be proportional to the delay and impact on the [paying party]'s operations.
Deduction for failure to meet safety requirements clause
This clause applies when safety standards are not met.
The [paying party] may deduct from payments due if the [receiving party] fails to meet the safety requirements or protocols outlined in [insert section]. The deduction will be based on the costs required to rectify the safety non-compliance.
Deduction for failure to maintain confidentiality clause
This clause applies when confidentiality obligations are breached.
The [paying party] may deduct from payments due if the [receiving party] breaches any confidentiality obligations specified in [insert section]. The deduction will reflect the cost of rectifying the breach and ensuring compliance.
Deduction for late submission of project deliverables clause
This clause applies when project deliverables are submitted late.
The [paying party] may deduct from payments due if the [receiving party] submits project deliverables past the agreed-upon deadlines. The deduction will be proportional to the delay in submission and the impact on the overall project timeline.
Deduction for failure to meet agreed packaging standards clause
This clause applies when packaging standards are not met.
The [paying party] may deduct from payments due if the packaging of goods delivered by the [receiving party] does not comply with the standards set forth in [insert section]. The deduction will reflect the cost of re-packaging or addressing any issues caused by the incorrect packaging.
Deduction for failure to adhere to inventory management requirements clause
This clause applies when inventory management is inadequate.
The [paying party] may deduct from payments due if the [receiving party] fails to meet the inventory management requirements outlined in [insert section], including the maintenance of adequate stock levels and accurate record-keeping. The deduction will be based on the cost of addressing inventory discrepancies.
Deduction for failure to meet agreed payment terms clause
This clause applies when payment terms are not met.
The [paying party] may deduct from payments due if the [receiving party] fails to meet the agreed-upon payment terms, including overdue invoices or incomplete payments. The deduction will reflect the penalties or interest resulting from the delay.
Deduction for failure to meet shipping requirements clause
This clause applies when shipping requirements are not met.
The [paying party] may deduct from payments due if the [receiving party] fails to meet the shipping requirements outlined in [insert section], including deadlines, packaging, or documentation. The deduction will reflect the cost of addressing shipping failures.
Deduction for failure to provide timely project updates clause
This clause applies when project updates are not provided on time.
The [paying party] may deduct from payments due if the [receiving party] fails to provide timely project updates or status reports as required under [insert section]. The deduction will be based on the delay in providing the updates.
Deduction for non-compliance with customer feedback requirements clause
This clause applies when customer feedback requirements are not met.
The [paying party] may deduct from payments due if the [receiving party] fails to collect, analyze, or act on customer feedback as outlined in [insert section]. The deduction will reflect the costs incurred due to the failure to address customer concerns.
Deduction for non-completion of agreed tasks clause
This clause applies when tasks are left incomplete.
The [paying party] may deduct from payments due if the [receiving party] fails to complete tasks or deliverables as specified in [insert section]. The deduction will be based on the value of the incomplete tasks or deliverables.
Deduction for failure to meet technology standards clause
This clause applies when technology standards are not met.
The [paying party] may deduct from payments due if the [receiving party]'s technology, systems, or platforms do not meet the agreed-upon standards, specifications, or requirements outlined in [insert section]. The deduction will reflect the costs needed to address any deficiencies.
Deduction for failure to comply with regulatory standards clause
This clause applies when regulatory standards are not adhered to.
The [paying party] may deduct from payments due if the [receiving party] fails to comply with the regulatory standards or laws applicable to the goods, services, or performance under this agreement. The deduction will reflect the cost of rectifying the non-compliance.
Deduction for failure to maintain product specifications clause
This clause applies when product specifications are not maintained.
The [paying party] may deduct from payments due if the [receiving party]'s goods or services fail to meet the product specifications outlined in [insert section]. The deduction will reflect the cost of replacing or modifying the products to meet the specifications.
Deduction for failure to meet agreed performance criteria clause
This clause applies when performance criteria are not met.
The [paying party] may deduct from payments due if the [receiving party] fails to meet the agreed performance criteria, such as delivery speed, quality benchmarks, or customer satisfaction targets outlined in [insert section]. The deduction will be based on the level of non-performance.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.