Withholding clause: Copy, customize, and use instantly
Introduction
A withholding clause specifies the conditions under which one party may withhold payment or performance under a contract. This clause helps protect the party withholding by ensuring compliance or addressing concerns before full performance is rendered. It is especially important in agreements involving milestones or conditional payments.
Below are withholding clause templates tailored to various scenarios. Copy the one you need, customize it, and add it to your contract.
Standard withholding clause
This clause allows withholding in case of non-compliance.
The [paying party] may withhold payment of any amount due under this agreement if the [receiving party] fails to meet the performance milestones or deliverables outlined in [insert section or schedule]. The withheld amount will be paid upon satisfactory completion of the required obligations.
Withholding for defective performance clause
This clause applies when there is defective performance.
The [paying party] has the right to withhold payment if the [receiving party] fails to deliver the goods or services in accordance with the specifications or quality standards set forth in this agreement. The amount withheld shall be equivalent to the value of the defective performance and will be paid once corrective actions are completed.
Withholding for undisputed amounts clause
This clause allows withholding only for disputed amounts.
The [paying party] may withhold only the disputed amount from any invoice that does not conform to the agreed terms of this agreement. Any undisputed amounts shall be paid in full in accordance with the payment schedule.
Withholding for taxes clause
This clause addresses withholding due to tax obligations.
The [paying party] shall withhold any taxes required by applicable laws or regulations from any payment made to the [receiving party]. The withheld amount will be remitted directly to the relevant tax authority, and the [receiving party] will be provided with documentation of such payments.
Withholding for non-delivery clause
This clause applies to withholding for failure to deliver.
The [paying party] may withhold payment until the [receiving party] delivers the agreed-upon goods or services, in full compliance with the delivery schedule and specifications outlined in [insert section]. Payment will be made within [insert timeframe] after delivery is successfully completed.
Withholding for breach of contract clause
This clause permits withholding due to breach.
In the event of a material breach by the [receiving party], the [paying party] may withhold payment of any amounts due until the breach is remedied. The [receiving party] shall be notified in writing of the breach and given [insert period] to cure the breach before payment is released.
Withholding for indemnity clause
This clause applies to withholding due to indemnification.
The [paying party] may withhold payment to the [receiving party] if the [receiving party] has any indemnification obligations under this agreement that remain unsatisfied. The amount withheld shall be equal to the estimated amount of the indemnification claim.
Withholding for incomplete work clause
This clause applies to withholding for incomplete work.
The [paying party] may withhold payment in an amount proportionate to the incomplete work or performance that does not meet the requirements as outlined in [insert section]. Payments will be made once the incomplete work is completed satisfactorily.
Withholding for warranty issues clause
This clause allows withholding for unresolved warranty claims.
The [paying party] may withhold payment for any goods or services that are subject to warranty claims until the warranty issues are resolved. The amount withheld will be based on the value of the warranty claim until satisfactory resolution.
Withholding for late payments clause
This clause applies to withholding due to late performance or payment.
If the [receiving party] fails to meet the agreed deadlines or milestones, the [paying party] reserves the right to withhold payment until the delayed performance is completed. A late fee may also apply as per the terms in [insert section].
Withholding for audit clause
This clause applies when withholding is based on an audit.
The [paying party] may withhold payment if an audit of the [receiving party]'s performance or financial records reveals discrepancies, non-compliance, or overbilling. Payment will be withheld until the audit is completed and any issues are resolved.
Withholding for third-party claims clause
This clause applies to withholding due to third-party claims.
The [paying party] may withhold payment if any third-party claims, liens, or encumbrances are placed against the goods or services provided under this agreement. Payments will be withheld until such claims are cleared.
Withholding for failure to provide documentation clause
This clause applies to withholding for lack of necessary documentation.
The [paying party] may withhold payment until the [receiving party] provides the required documentation, such as certificates of compliance, delivery receipts, or other relevant materials specified in [insert section].
Withholding for compliance with laws clause
This clause applies to withholding if legal compliance is not met.
The [paying party] may withhold payment if the [receiving party] fails to comply with any applicable laws, regulations, or contractual obligations that affect the goods or services delivered under this agreement. Payment will be withheld until compliance is achieved.
Withholding for subcontractor performance clause
This clause allows withholding due to subcontractor issues.
If any subcontractors employed by the [receiving party] fail to perform in accordance with the terms of this agreement, the [paying party] may withhold payment to the [receiving party] until the subcontractor’s issues are rectified or the work is completed.
Withholding for failure to meet quality standards clause
This clause applies when quality standards are not met.
The [paying party] may withhold payment if the goods or services provided by the [receiving party] fail to meet the quality standards specified in [insert section]. Payment will be made once the quality issues are resolved.
Withholding for force majeure clause
This clause addresses withholding due to force majeure events.
If a force majeure event prevents the [receiving party] from fulfilling its obligations, the [paying party] may withhold payment until the event is resolved or an alternative solution is agreed upon by both parties.
Withholding for insurance requirements clause
This clause applies when insurance requirements are not met.
The [paying party] may withhold payment if the [receiving party] fails to provide the necessary proof of insurance coverage required under this agreement. Payment will be released upon receipt of the required insurance documentation.
Withholding for unsatisfactory inspections clause
This clause applies when goods or services fail inspection.
The [paying party] may withhold payment if the goods or services delivered do not pass the required inspection or testing process outlined in [insert section]. Payment will be released upon successful inspection and approval.
Withholding for regulatory non-compliance clause
This clause ensures compliance with regulatory standards.
The [paying party] may withhold payment if the [receiving party] fails to comply with relevant regulatory requirements, such as safety, environmental, or industry-specific regulations. Payment will be withheld until full compliance is demonstrated.
Withholding for unapproved changes clause
This clause applies when changes to the contract are made without approval.
The [paying party] may withhold payment if the [receiving party] makes any unauthorized changes to the scope, timeline, or deliverables without prior written approval. Payment will be withheld until these changes are approved and the contract terms are updated accordingly.
Withholding for failure to submit reports clause
This clause applies to withholding for missing reports or updates.
The [paying party] may withhold payment if the [receiving party] fails to submit the required progress reports, invoices, or other documentation specified in [insert section]. Payment will be made once all required documents are submitted and verified.
Withholding for delayed submission of deliverables clause
This clause governs withholding due to delays in deliverables.
The [paying party] may withhold payment for any deliverables that are submitted late or not in accordance with the agreed-upon schedule. Payment will be withheld until the delayed deliverables are submitted and meet the requirements.
Withholding for unsatisfactory performance clause
This clause applies when performance does not meet agreed-upon standards.
The [paying party] may withhold payment if the [receiving party]'s performance does not meet the standards or specifications set forth in [insert section]. Payment will be withheld until the performance issues are corrected and confirmed.
Withholding for dispute resolution clause
This clause applies when a dispute affects payment.
The [paying party] may withhold payment while any dispute related to the performance or delivery of goods and services is being resolved, either through mediation, arbitration, or another agreed-upon dispute resolution method. Payment will be released once the dispute is resolved.
Withholding for delivery discrepancies clause
This clause addresses withholding due to delivery issues.
The [paying party] may withhold payment if the [receiving party] fails to deliver the correct quantity, specifications, or quality of goods as outlined in the agreement. Payment will be withheld until the discrepancies are resolved.
Withholding for failure to meet deadlines clause
This clause applies when deadlines are missed.
The [paying party] may withhold payment if the [receiving party] misses any critical deadlines outlined in the agreement. Payment will be withheld until the deadlines are met or an acceptable extension is agreed upon.
Withholding for financial instability clause
This clause governs withholding due to the other party’s financial situation.
The [paying party] may withhold payment if the [receiving party] experiences financial instability, such as bankruptcy, insolvency, or a significant drop in creditworthiness. Payment will be withheld until financial stability is demonstrated.
Withholding for audit discrepancies clause
This clause allows withholding due to audit findings.
The [paying party] may withhold payment if an audit of the [receiving party]'s financial records reveals discrepancies or overbillings. Payment will be withheld until the discrepancies are resolved or reimbursed.
Withholding for unresolved customer complaints clause
This clause applies when customer complaints are not resolved.
The [paying party] may withhold payment if the [receiving party] fails to resolve any customer complaints related to the goods or services provided under this agreement. Payment will be withheld until all complaints are addressed and resolved.
Withholding for missing licenses or certifications clause
This clause applies when required certifications are missing.
The [paying party] may withhold payment if the [receiving party] does not provide the necessary licenses, certifications, or qualifications required to perform under this agreement. Payment will be withheld until the required documentation is provided.
Withholding for unresolved warranty claims clause
This clause applies when warranty issues are pending.
The [paying party] may withhold payment if the [receiving party] fails to resolve any outstanding warranty claims. Payment will be withheld until the warranty issues are resolved in accordance with the terms of the agreement.
Withholding for failure to meet service standards clause
This clause addresses withholding due to service quality issues.
The [paying party] may withhold payment if the services provided do not meet the agreed-upon standards, as specified in [insert section]. Payment will be withheld until the service standards are met or corrected.
Withholding for failure to meet contractual obligations clause
This clause applies when obligations are not met.
The [paying party] may withhold payment if the [receiving party] fails to meet any contractual obligations under this agreement. Payment will be withheld until the obligations are fulfilled or adequately addressed.
Withholding for incomplete documentation clause
This clause applies when required documentation is missing.
The [paying party] may withhold payment until the [receiving party] submits all required documentation, such as certificates of completion, invoices, or delivery receipts, as specified in [insert section].
Withholding for unapproved subcontractor work clause
This clause applies when subcontractor work is not approved.
The [paying party] may withhold payment if any subcontracted work is performed without prior approval by the [disclosing party] or if subcontractor performance does not meet the agreed-upon terms. Payment will be withheld until proper approvals are obtained.
Withholding for failure to adhere to safety standards clause
This clause applies when safety protocols are not followed.
The [paying party] may withhold payment if the [receiving party] fails to comply with agreed-upon safety standards or regulations. Payment will be withheld until compliance is demonstrated and verified.
Withholding for delayed milestone achievement clause
This clause governs withholding based on missed milestones.
The [paying party] may withhold payment until the [receiving party] meets specific milestones as outlined in [insert section]. Payment will be withheld until the completion of the milestone(s) in accordance with the contract terms.
Withholding for quality assurance failure clause
This clause applies when goods or services fail quality checks.
The [paying party] may withhold payment if the [receiving party] fails to meet the agreed-upon quality standards or passes the necessary quality assurance tests. Payment will be withheld until the quality issues are addressed and rectified.
Withholding for breach of warranty clause
This clause applies when warranty issues remain unresolved.
The [paying party] may withhold payment if the [receiving party] fails to honor any warranty obligations outlined in this agreement. Payment will be withheld until the warranty issues are fully resolved.
Withholding for inadequate reporting clause
This clause applies when reporting is inadequate or missing.
The [paying party] may withhold payment if the [receiving party] fails to provide timely or accurate reports as required under this agreement. Payment will be withheld until the required reports are submitted and verified.
Withholding for non-performance clause
This clause addresses withholding due to non-performance.
The [paying party] may withhold payment if the [receiving party] fails to perform any material obligation under this agreement. Payment will be withheld until the performance issues are corrected to the satisfaction of the [paying party].
Withholding for failure to meet deadlines clause
This clause applies when deadlines are missed.
The [paying party] may withhold payment if the [receiving party] fails to meet the deadlines or timelines outlined in the agreement. Payment will be withheld until the deadlines are met or agreed-upon extensions are granted.
Withholding for non-compliance with contract terms clause
This clause applies when there is a breach of terms.
The [paying party] may withhold payment if the [receiving party] fails to comply with the terms and conditions specified in this agreement. Payment will be withheld until the terms are fully met.
Withholding for late or partial deliveries clause
This clause addresses withholding for delayed or incomplete deliveries.
The [paying party] may withhold payment if the [receiving party] delivers goods or services late or partially, as outlined in [insert section]. Payment will be withheld until the full and timely delivery is completed.
Withholding for third-party claim resolution clause
This clause applies when third-party claims are unresolved.
The [paying party] may withhold payment if there are unresolved third-party claims or liens related to the goods or services delivered under this agreement. Payment will be withheld until such claims are fully resolved.
Withholding for unresolved contract dispute clause
This clause governs withholding during contract disputes.
The [paying party] may withhold payment while any dispute regarding the performance, terms, or obligations under this agreement is being resolved. Payment will be released once the dispute is resolved or settled.
Withholding for missed inspections clause
This clause applies when inspections are missed or failed.
The [paying party] may withhold payment if the [receiving party] fails to pass any required inspections or certifications. Payment will be withheld until the inspection is successfully completed.
Withholding for unresolved legal matters clause
This clause applies when legal matters affect payment.
The [paying party] may withhold payment if there are unresolved legal matters, such as lawsuits, claims, or regulatory issues, that affect the performance or obligations under this agreement. Payment will be withheld until the legal matters are resolved.
Withholding for failure to provide insurance clause
This clause applies when required insurance is not provided.
The [paying party] may withhold payment if the [receiving party] fails to provide proof of required insurance coverage as stipulated in [insert section]. Payment will be withheld until the necessary insurance documentation is provided.
Withholding for unresolved contract amendments clause
This clause applies when amendments are not resolved.
The [paying party] may withhold payment if any amendments or changes to the contract terms remain unresolved or unapproved. Payment will be withheld until both parties agree to the amendment terms in writing.
Withholding for non-delivery of required documentation clause
This clause applies when required documents are not provided.
The [paying party] may withhold payment if the [receiving party] fails to deliver the required documentation, such as certifications or permits, as outlined in [insert section]. Payment will be withheld until the required documents are submitted.
Withholding for delayed or incomplete service delivery clause
This clause governs withholding due to incomplete or late service delivery.
The [paying party] may withhold payment if the [receiving party] fails to deliver services on time or in full accordance with the contract requirements. Payment will be withheld until the full service is delivered as per the contract.
Withholding for outstanding claims clause
This clause applies when claims are pending.
The [paying party] may withhold payment if any outstanding claims against the [receiving party] remain unresolved, including disputes over goods or services delivered. Payment will be withheld until the claims are settled or resolved.
Withholding for failure to maintain required licenses clause
This clause applies when the required licenses are not maintained.
The [paying party] may withhold payment if the [receiving party] fails to maintain the necessary licenses or certifications required under this agreement. Payment will be withheld until proof of the required licenses is provided.
Withholding for unapproved changes to scope clause
This clause addresses withholding when scope changes are unapproved.
The [paying party] may withhold payment if the [receiving party] makes any unapproved changes to the scope of work or deliverables outlined in this agreement. Payment will be withheld until a written approval is obtained for the changes.
Withholding for unresolved quality issues clause
This clause governs withholding when quality issues arise.
The [paying party] may withhold payment if the goods or services delivered by the [receiving party] fail to meet the quality standards or specifications outlined in [insert section]. Payment will be withheld until the quality issues are resolved.
Withholding for incomplete milestones clause
This clause applies to withholding when milestones are not fully achieved.
The [paying party] may withhold payment if the [receiving party] fails to complete any agreed-upon milestones outlined in [insert schedule]. Payment will be withheld until the milestones are completed to the satisfaction of the [paying party].
Withholding for failure to provide warranties clause
This clause applies when warranties are not provided.
The [paying party] may withhold payment if the [receiving party] fails to provide warranties for the goods or services delivered as required in [insert section]. Payment will be withheld until the required warranties are provided.
Withholding for unfulfilled contractual obligations clause
This clause applies when contractual obligations are not met.
The [paying party] may withhold payment if the [receiving party] fails to fulfill any obligations outlined in this agreement. Payment will be withheld until all obligations are met and verified.
Withholding for non-compliance with performance standards clause
This clause governs withholding for poor performance.
The [paying party] may withhold payment if the [receiving party] fails to meet the performance standards or service level agreements (SLAs) outlined in this agreement. Payment will be withheld until the performance is brought up to the required standard.
Withholding for failure to complete corrective actions clause
This clause applies when corrective actions are not completed.
The [paying party] may withhold payment if the [receiving party] fails to complete corrective actions required following an audit, inspection, or performance review. Payment will be withheld until the corrective actions are completed satisfactorily.
Withholding for missed reporting deadlines clause
This clause addresses withholding for missed reporting.
The [paying party] may withhold payment if the [receiving party] fails to submit required reports, financial statements, or other documentation by the agreed deadlines. Payment will be withheld until the required documents are submitted.
Withholding for failure to meet agreed timelines clause
This clause applies when timelines are not met.
The [paying party] may withhold payment if the [receiving party] misses any critical deadlines for the delivery of goods, services, or milestones outlined in this agreement. Payment will be withheld until the timelines are met or extended as agreed upon.
Withholding for unresolved regulatory violations clause
This clause governs withholding when regulatory issues arise.
The [paying party] may withhold payment if the [receiving party] violates any applicable regulations or legal requirements. Payment will be withheld until the regulatory violations are resolved and compliance is ensured.
Withholding for unpaid third-party claims clause
This clause applies when there are third-party claims.
The [paying party] may withhold payment if any third-party claims are pending or unresolved that may affect the performance of the contract or delivery of goods and services. Payment will be withheld until the claims are settled.
Withholding for unsatisfactory contract compliance clause
This clause addresses withholding when compliance is not met.
The [paying party] may withhold payment if the [receiving party] fails to comply with the terms and conditions specified in the agreement, including delivery standards, legal requirements, or other contractual obligations. Payment will be withheld until compliance is achieved.
Withholding for unapproved budget changes clause
This clause applies to withholding when budget modifications are not approved.
The [paying party] may withhold payment if the [receiving party] changes the budget without prior approval from the [disclosing party]. Payment will be withheld until an approved budget is established.
Withholding for violation of confidentiality clause
This clause applies when confidentiality agreements are breached.
The [paying party] may withhold payment if the [receiving party] violates any confidentiality or non-disclosure provisions outlined in this agreement. Payment will be withheld until confidentiality is restored and verified.
Withholding for incomplete or partial deliveries clause
This clause governs withholding for partial deliveries.
The [paying party] may withhold payment if the [receiving party] fails to deliver all of the goods or services in accordance with the delivery schedule or contract requirements. Payment will be withheld until the full delivery is completed.
Withholding for failure to obtain required approvals clause
This clause applies when approvals are not obtained.
The [paying party] may withhold payment if the [receiving party] fails to obtain the necessary approvals or permits required for performance under this agreement. Payment will be withheld until the required approvals are provided.
Withholding for missed performance benchmarks clause
This clause applies when performance benchmarks are not met.
The [paying party] may withhold payment if the [receiving party] fails to meet performance benchmarks or service level agreements (SLAs) defined in this agreement. Payment will be withheld until the benchmarks are met.
Withholding for failure to rectify defects clause
This clause governs withholding due to unresolved defects.
The [paying party] may withhold payment if the [receiving party] fails to correct defects or deficiencies identified in the goods or services delivered. Payment will be withheld until the defects are resolved to the satisfaction of the [paying party].
Withholding for non-delivery of post-service support clause
This clause applies to withholding when support is not provided.
The [paying party] may withhold payment if the [receiving party] fails to provide post-service support as specified in the agreement, such as maintenance, updates, or customer service. Payment will be withheld until the required support services are provided.
Withholding for failure to maintain required documentation clause
This clause addresses withholding when documentation is not maintained.
The [paying party] may withhold payment if the [receiving party] fails to maintain the necessary documentation required for record-keeping or compliance purposes under this agreement. Payment will be withheld until the required documentation is provided.
Withholding for unresolved contract disputes clause
This clause applies during contract disputes.
The [paying party] may withhold payment if a dispute regarding the terms, performance, or obligations of this agreement remains unresolved. Payment will be withheld until the dispute is resolved through mediation, arbitration, or mutual agreement.
Withholding for failure to meet environmental standards clause
This clause applies when environmental standards are not met.
The [paying party] may withhold payment if the [receiving party] fails to meet the environmental standards or sustainability criteria outlined in the agreement. Payment will be withheld until compliance with these standards is demonstrated.
Withholding for non-compliance with insurance requirements clause
This clause applies when insurance requirements are not met.
The [paying party] may withhold payment if the [receiving party] fails to provide proof of the necessary insurance coverage, as specified in [insert section]. Payment will be withheld until the required insurance is provided and verified.
Withholding for non-submission of required certifications clause
This clause applies when certifications are not submitted.
The [paying party] may withhold payment if the [receiving party] fails to submit the required certifications, such as compliance or safety certifications, as specified in [insert section]. Payment will be withheld until the required certifications are provided.
Withholding for failure to meet delivery conditions clause
This clause applies when delivery conditions are not met.
The [paying party] may withhold payment if the [receiving party] fails to meet any delivery conditions outlined in this agreement, including timelines, packaging, or quantity requirements. Payment will be withheld until the delivery is completed in accordance with the contract.
Withholding for failure to meet legal obligations clause
This clause applies when legal obligations are not met.
The [paying party] may withhold payment if the [receiving party] fails to meet any applicable legal requirements, including regulatory compliance or tax obligations. Payment will be withheld until all legal obligations are satisfied.
Withholding for unresolved quality control issues clause
This clause governs withholding for quality issues.
The [paying party] may withhold payment if the [receiving party] fails to resolve any quality control issues or defects identified during the inspection process. Payment will be withheld until all quality control issues are resolved to the [paying party]'s satisfaction.
Withholding for outstanding delivery items clause
This clause applies when certain items are missing from a delivery.
The [paying party] may withhold payment for any goods or services that have not been delivered or completed as per the contract. Payment will be withheld until the outstanding items are delivered and verified.
Withholding for unauthorized subcontractor usage clause
This clause applies when subcontractors are used without authorization.
The [paying party] may withhold payment if the [receiving party] engages subcontractors without prior approval, as specified in [insert section]. Payment will be withheld until the subcontractor issues are resolved and appropriate approvals are obtained.
Withholding for incomplete regulatory filings clause
This clause applies when required regulatory filings are incomplete.
The [paying party] may withhold payment if the [receiving party] fails to submit any required regulatory filings or documents related to this agreement. Payment will be withheld until the necessary filings are completed and submitted.
Withholding for failure to adhere to project milestones clause
This clause applies to withholding based on missed project milestones.
The [paying party] may withhold payment if the [receiving party] fails to meet the agreed-upon project milestones or deadlines as outlined in [insert schedule]. Payment will be withheld until the milestones are completed and approved.
Withholding for non-performance of post-delivery obligations clause
This clause applies when post-delivery obligations are not met.
The [paying party] may withhold payment if the [receiving party] fails to meet any post-delivery obligations, such as training, support, or maintenance, outlined in [insert section]. Payment will be withheld until the post-delivery obligations are fulfilled.
Withholding for failure to meet industry standards clause
This clause applies when industry standards are not met.
The [paying party] may withhold payment if the [receiving party] fails to meet industry-specific standards, certifications, or best practices as outlined in this agreement. Payment will be withheld until compliance is achieved.
Withholding for breach of data protection obligations clause
This clause applies when data protection obligations are breached.
The [paying party] may withhold payment if the [receiving party] breaches any data protection or privacy obligations outlined in [insert section]. Payment will be withheld until the breach is rectified and compliance is restored.
Withholding for failure to meet contractually agreed service levels clause
This clause applies when service levels are not met.
The [paying party] may withhold payment if the [receiving party] fails to meet the service levels or performance standards specified in [insert section]. Payment will be withheld until the agreed service levels are achieved.
Withholding for outstanding warranty claims clause
This clause applies when warranty claims are not resolved.
The [paying party] may withhold payment if any warranty claims remain unresolved. Payment will be withheld until all warranty issues are resolved and the necessary corrective actions are completed.
Withholding for non-delivery of required materials clause
This clause applies when materials are not delivered as agreed.
The [paying party] may withhold payment if the [receiving party] fails to deliver all the necessary materials, components, or goods as outlined in [insert section]. Payment will be withheld until the missing items are delivered and verified.
Withholding for unapproved changes to pricing clause
This clause applies when pricing changes are made without approval.
The [paying party] may withhold payment if the [receiving party] changes the agreed-upon pricing or costs without prior written approval. Payment will be withheld until the pricing changes are approved and documented.
Withholding for non-compliance with contract amendments clause
This clause applies to withholding when amendments are not followed.
The [paying party] may withhold payment if the [receiving party] fails to comply with amendments to the contract, including changes to scope, timelines, or payment terms. Payment will be withheld until the amendments are implemented correctly.
Withholding for overdue progress reports clause
This clause applies when progress reports are overdue.
The [paying party] may withhold payment if the [receiving party] fails to submit progress reports or updates as required by the agreement. Payment will be withheld until the overdue reports are received and reviewed.
Withholding for substandard performance clause
This clause applies when performance does not meet agreed standards.
The [paying party] may withhold payment if the [receiving party] fails to perform or deliver services up to the standards outlined in this agreement. Payment will be withheld until the performance is rectified and meets the required criteria.
Withholding for failure to meet warranty obligations clause
This clause applies when warranty obligations are not met.
The [paying party] may withhold payment if the [receiving party] fails to meet its warranty obligations, including failure to repair, replace, or remedy defective products or services. Payment will be withheld until the warranty obligations are satisfied.
Withholding for unresolved payment disputes clause
This clause applies during payment-related disputes.
The [paying party] may withhold payment while any payment disputes regarding the goods or services provided under this agreement remain unresolved. Payment will be withheld until the dispute is resolved through negotiation, mediation, or other agreed-upon methods.
Withholding for failure to meet audit requirements clause
This clause applies to withholding during an audit.
The [paying party] may withhold payment if the [receiving party] fails to comply with audit requirements, including failing to provide necessary documents or data for review. Payment will be withheld until the audit is completed and any issues are resolved.
Withholding for unsatisfactory vendor performance clause
This clause applies when a vendor fails to meet performance standards.
The [paying party] may withhold payment if a vendor hired by the [receiving party] does not meet the performance standards outlined in this agreement. Payment will be withheld until the vendor issues are resolved and the standards are met.
Withholding for failure to provide proper invoices clause
This clause applies when invoices are not submitted correctly.
The [paying party] may withhold payment if the [receiving party] submits incorrect or incomplete invoices that do not comply with the requirements outlined in [insert section]. Payment will be withheld until proper invoices are provided.
Withholding for dispute over intellectual property rights clause
This clause applies when there is a dispute over intellectual property.
The [paying party] may withhold payment if there is a dispute over the ownership or licensing of intellectual property, including patents, trademarks, or copyrights, that affects the goods or services provided under this agreement. Payment will be withheld until the dispute is resolved.
Withholding for unapproved changes in subcontracting clause
This clause applies when subcontractors are changed without approval.
The [paying party] may withhold payment if the [receiving party] uses unapproved subcontractors to perform any of the obligations under this agreement. Payment will be withheld until the subcontracting issue is resolved and approved by the [paying party].
Withholding for failure to provide backup or support clause
This clause applies to withholding due to lack of support or backup.
The [paying party] may withhold payment if the [receiving party] fails to provide the necessary backup, support, or maintenance services outlined in [insert section]. Payment will be withheld until the support services are provided as agreed.
Withholding for non-performance of agreed milestones clause
This clause applies when milestones are not met.
The [paying party] may withhold payment if the [receiving party] fails to achieve the agreed-upon milestones or deliverables by the specified dates. Payment will be withheld until the milestones are completed and confirmed.
Withholding for failure to comply with safety regulations clause
This clause applies when safety regulations are not adhered to.
The [paying party] may withhold payment if the [receiving party] fails to comply with safety regulations or standards that apply to the goods or services provided under this agreement. Payment will be withheld until compliance is ensured.
Withholding for non-completion of critical tasks clause
This clause applies to withholding due to missed critical tasks.
The [paying party] may withhold payment if the [receiving party] fails to complete critical tasks or key deliverables that are essential to the successful execution of this agreement. Payment will be withheld until these tasks are completed.
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.