Performance-Related Provision
(Redirected from performance-based contractual provision)
A Performance-Related Provision is a contractual provision that contains performance events by one or more contract parties.
- Context:
- It can range from being an Atomic Performance-Related Provision to being a Complex Performance-Related Provision.
- It can range from being a Single-Element Performance-Related Provision to a Multi-Element Performance-Related Provision.
- It can range from being a General Performance-Related Provision to a Contract-Specific Performance-Related Provision.
- It can be found in various types of contracts, such as Service Contracts, Sales Contracts, License Agreements, Lease Agreements, and Employment Contracts.
- It can interact with other types of contractual provisions, such as Relationship Management Provisions, Risk Allocation Provisions, and Boilerplate Provisions.
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- Example(s):
- An Obligation Provision with primary obligations, such as:
- A Permission Provision with primary permissions, such as:
- A Use Permission Provision with a product use permission.
- An Access Permission Provision with a access permission, such as: allowing one party limited access to the other party's facilities.
- A Sublicensing Permission Provision with sublicensing permission to third parties.
- A Representation and Warranty Provision with specific representation or warranty details, such as:
- An Express Warranty Provision in which a seller warrants that goods shall conform to certain specifications.
- An Implied Warranty Provision specifying that goods are merchantable and fit for a particular purpose.
- A Service Level Warranty Provision in which a service provider warrants a certain level of service performance.
- A Force Majeure Provision with specific force majeure parameters, such as:
- A provision excusing a party's performance in the event of a natural disaster or other unforeseen circumstances.
- A provision specifying the conditions that constitute a force majeure event and the required notice procedures.
- A Remedy Provision with remedy details, such as:
- A Liquidated Damages Provision specifying a predetermined amount of damages in the event of a breach.
- An Equitable Remedy Provision allowing a non-breaching party to seek specific performance or injunctive relief.
- A Indemnification Provision requiring one party to indemnify the other for certain types of claims or losses.
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- Counter-Example(s):
- Relationship Management Provisions (e.g. termination provisions), which relate to the overall management of the contractual relationship rather than specific performance obligations.
- Boilerplate Provisions (e.g. Severability Provision or an Entire Agreement Provision), which do not directly relate to performance.
- Definitions Sections or Recitals, which provide background information or define key terms rather than establishing performance requirements.
- See: Contract Document Atomic Provision, Contractual Obligation, Contractual Permission, Contract Law, Contract Drafting, Contract Interpretation, Risk Allocation.