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B2b Contract Clause Guidance
Summary
Clause 5.4 allows withholding payment for disputed invoices in good faith. Clause 5.6 permits deductions for owed sums, including disputed amounts. Ensure clarity and documentation to prevent subjective deductions. Consider a fair dispute resolution process.Full Conversation
can I paste the clauses in question?
Of course! Please go ahead and paste the clauses you're having questions about, and I'll do my best to provide you with some helpful guidance.
*.* Where the Company and/or Client disputes in good faith on reasonable grounds any sum invoiced by the Service
Provider, the Company may withhold payment in respect of the amount under dispute, pending resolution of the
dispute.
Clause *.* addresses the situation where the Company or Client disputes an invoiced amount in good faith and on reasonable grounds. Here's a simplified breakdown:
- The Company or Client can withhold payment of the disputed amount.
- This withholding can continue until the dispute is resolved.
Would you like more information on how to handle such disputes or the potential implications of this clause?
- The Company or Client can withhold payment of the disputed amount.
- This withholding can continue until the dispute is resolved.
Would you like more information on how to handle such disputes or the potential implications of this clause?
is this clause not shady and abusive?
Case Rating: *
The clause itself isn't necessarily shady or abusive, but it can be problematic if not handled properly. Here are some considerations:
- Good Faith: Ensure disputes are genuinely in good faith and have reasonable grounds.
- Resolution: Define clear steps for dispute resolution to avoid prolonged withholding of payment.
Would you like more information on how to handle such disputes or the potential implications of this clause?
The clause itself isn't necessarily shady or abusive, but it can be problematic if not handled properly. Here are some considerations:
- Good Faith: Ensure disputes are genuinely in good faith and have reasonable grounds.
- Resolution: Define clear steps for dispute resolution to avoid prolonged withholding of payment.
Would you like more information on how to handle such disputes or the potential implications of this clause?
what about *.* The Company will be entitled to deduct from the Fee (and any other sums) due to the Service Provider any sums that
the Service Provider and/or the Individual may owe to the Company and/or any Client at any time, including any sum
under dispute in accordance with Clause *.*.
Case Rating: *
Clause *.* allows the Company to deduct any amounts owed by the Service Provider or Individual from the Fee or other sums due. Here are the key points:
- The Company can deduct any amounts owed, including disputed sums from Clause *.*.
- This ensures the Company can recover any debts or disputes directly from payments due.
Would you like more information on how this clause might impact your business or potential safeguards against it?
Clause *.* allows the Company to deduct any amounts owed by the Service Provider or Individual from the Fee or other sums due. Here are the key points:
- The Company can deduct any amounts owed, including disputed sums from Clause *.*.
- This ensures the Company can recover any debts or disputes directly from payments due.
Would you like more information on how this clause might impact your business or potential safeguards against it?
since it's vaguely defined under what reasons they can deduct sums can't they just subjectively choose to deduct any sums they wish?
Case Rating: *
The clause does seem to give quite a bit of subjective power to the Company. Here are some important points to consider:
- Clarity: Ensure the contract clearly specifies under what conditions deductions can be made.
- Documentation: Require documentation or proof for any deductions.
- Dispute Resolution: Have a clear and fair dispute resolution process outlined.
Would you like more detailed advice on how to address this clause in your contract?
The clause does seem to give quite a bit of subjective power to the Company. Here are some important points to consider:
- Clarity: Ensure the contract clearly specifies under what conditions deductions can be made.
- Documentation: Require documentation or proof for any deductions.
- Dispute Resolution: Have a clear and fair dispute resolution process outlined.
Would you like more detailed advice on how to address this clause in your contract?
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