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:
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)
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