PAYMENT (SERVICES RELATED)

Other Names: Payments • Payment Terms • Fees • Fees and Expenses • Compensation

Sample Clause Language:

[X].1  Fees. As full and complete compensation for satisfactory performance of the Services, [CLIENT] shall pay [SERVICE PROVIDER] the fees and other compensation set forth in [Section NUMBER] [Exhibit LETTER] [the applicable Statement of Work]. [SERVICE PROVIDER] shall be entitled to reimbursement of out-of-pocket expenses directly related to performing the Services. [Out-of-pocket expenses shall include reasonable and verifiable coach class travel, hotel accommodations, and meal expenses that are incurred by SERVICE PROVIDER and are directly related to the Services.] [Any individual expense in excess of $AMOUNT shall require the prior written approval of CLIENT.]

[X].2  Invoicing. [SERVICE PROVIDER] shall invoice [CLIENT] for all fees and expenses payable by [CLIENT] under this Agreement. Such invoices shall set forth in detail the basis for the charges reflected therein. Each invoice shall include copies of receipts for all out-of-pocket expenses incurred. [SERVICE PROVIDER] shall send all invoices to the address set forth in [Section NUMBER] [Exhibit LETTER] [the applicable Statement of Work]. All invoices shall be payable within the period set forth in [Section NUMBER] [Exhibit LETTER] [the applicable Statement of Work].

[X].3  Payment Default. In the event of an overdue payment (a “Payment Default”), (a) interest of [NUMBER]% will be accrued daily of the overdue payment as of the date of the Payment Default and (b) if such Payment Default exceeds $[AMOUNT], [SERVICE PROVIDER] may, with prior notice to [CLIENT], suspend the provision of the Services until the Payment Default is rectified by [CLIENT]. If the Payment Default is not rectified within [thirty (30) days] after notice of default is provided to [CLIENT], then it will be deemed an uncured material breach and [SERVICE PROVIDER] may terminate this Agreement pursuant to Section [SECTION NUMBER ON TERMINATION].

Source: Based on NovAccess Global Inc. (2020, September 11). Form 8-K. Retrieved from SEC EDGAR website http://www.sec.gov/edgar.shtml


 

Description:

Payment clauses related to services provide the pricing structure for such services (e.g., fixed price vs. time-based), as well as related matters such as expenses and taxes. The sample clause here can be used for a fixed fee payment structure. It is drafted in favor of the service provider (e.g., contractor, consultant, developer, etc.).

Common Contracts with this Clause:

  • Service Agreements
  • Independent Contractor Agreements
  • Consulting Agreements
  • Advisor Agreements
  • Development Agreements
  • Designer Agreements
 

What you'll see with Lawgood:

Number of Positions Available:

Four (4) Alternative Positions

  • Favorable to Client (Time & Materials)
  • Favorable to Client (Fixed Fee)
  • Favorable to Service Provider (Fixed Fee)
  • Favorable to Service Provider (Time & Materials)

Related Clauses:

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