Damage Payment; Termination Payment Clause Samples

The Damage Payment; Termination Payment clause establishes the financial obligations of a party in the event of contract breach or early termination. Typically, it outlines the specific amounts or formulas used to calculate payments owed if one party fails to perform or if the agreement is ended prematurely, such as liquidated damages or pre-agreed termination fees. This clause serves to compensate the non-breaching party for losses incurred and provides a clear, predictable remedy, thereby reducing disputes and uncertainty over financial consequences.