Remedial action clause: Copy, customize, and use instantly
Introduction
A remedial action clause outlines the steps that must be taken when one party fails to meet the agreed terms of the contract. This clause ensures that both parties have clear expectations about the process of rectifying any issues, delays, or non-performance, and it helps to maintain the integrity of the agreement by providing a structured approach to resolving issues.
Below are templates for remedial action clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard remedial action clause
This version includes basic provisions for remedial action.
If either party fails to fulfill any of its obligations under this Agreement, the non-defaulting party may issue a written notice requiring the defaulting party to take remedial action. The defaulting party shall have [X] days to remedy the breach and provide written confirmation to the non-defaulting party that the issue has been addressed. If the breach is not remedied within the specified time, the non-defaulting party may terminate the Agreement or pursue other remedies as outlined in this Agreement.
Remedial action clause with provision for immediate action
This version applies to immediate remedial action.
In the event of a material breach by [Party B], [Party A] may require [Party B] to take immediate remedial action to resolve the breach. [Party B] will have [X] hours/days to take the necessary corrective steps and inform [Party A] of the actions taken. Failure to do so may result in further legal action or termination of this Agreement.
Remedial action clause with provision for corrective plan
This version applies to a corrective action plan.
If a breach occurs, the defaulting party will, within [X] days of receiving written notice, submit a corrective action plan outlining the steps to be taken to remedy the breach. The plan must include timelines for completion and measurable goals to ensure the breach is fully resolved. [Party A] will review the plan and provide approval or request modifications within [X] days.
Remedial action clause with provision for repeated breaches
This version applies to repeated breaches.
If the same breach occurs more than once within a [X]-month period, [Party A] may require [Party B] to provide a more comprehensive remedial action plan. If [Party B] fails to follow through on the new plan or if the breach continues, [Party A] may exercise its right to terminate the Agreement and seek damages for any losses incurred.
Remedial action clause with provision for third-party involvement
This version applies to third-party involvement in remedial action.
In the event of a breach, the parties may mutually agree to involve a third-party expert to assist with the remedial action. The third party will assess the issue, recommend corrective measures, and assist in implementing the remedies. The costs for the third-party involvement will be borne by the defaulting party, unless agreed otherwise.
Remedial action clause with provision for further penalties after breach
This version applies to further penalties.
If [Party B] fails to remedy a breach within the required time frame, [Party A] reserves the right to impose additional penalties, including but not limited to financial penalties, suspension of payments, or withholding further performance under this Agreement. The penalties will be outlined in an addendum to this Agreement and will be enforced immediately upon the expiration of the remedial period.
Remedial action clause with provision for continuous monitoring
This version applies to continuous monitoring.
After a remedial action plan is implemented, [Party A] reserves the right to monitor the progress of the remedy for a period of [X] months. If the issue is not fully resolved or reoccurs within this period, [Party A] may pursue further action, including termination of this Agreement or seeking legal remedies for any damages.
Remedial action clause with provision for payment suspension during remedy period
This version applies to payment suspension.
In the event of a breach, [Party A] may suspend any further payments to [Party B] until the breach is fully remedied. Payments will be resumed upon written confirmation from [Party A] that the remedial actions have been successfully completed, and the deliverables meet the agreed-upon standards.
Remedial action clause with provision for mitigation efforts
This version applies to mitigation efforts.
If a breach occurs, [Party B] will make reasonable efforts to mitigate the impact of the breach on [Party A] during the remedial action period. [Party B] will take all reasonable steps to prevent the breach from causing further damage, including implementing short-term solutions while the long-term remedial action is underway.
Remedial action clause with provision for voluntary corrective action
This version applies to voluntary corrective action.
In case of a breach, [Party B] may voluntarily initiate corrective action without being required to do so by [Party A]. If [Party B] remedies the breach within [X] days of discovering the issue and provides written confirmation, [Party A] will acknowledge the resolution and waive any penalties or further actions.
Remedial action clause with provision for suspension of obligations
This version applies to suspension of obligations.
If a breach occurs, [Party A] may suspend its performance under this Agreement until [Party B] remedies the breach. [Party B] will have [X] days to remedy the breach and resume performance, after which [Party A] may terminate the Agreement if the breach remains unresolved.
Remedial action clause with provision for detailed remedy steps
This version applies to detailed remedial steps.
Upon identifying a breach, the defaulting party agrees to take the following remedial actions within [X] days:Step 1: [Detailed description of action].Step 2: [Detailed description of action].Step 3: [Detailed description of action]. Once all steps have been completed, the deliverable will be resubmitted for final acceptance testing.
Remedial action clause with provision for notification of non-compliance
This version applies to non-compliance notification.
If [Party A] determines that a deliverable or service does not meet the specifications outlined in this Agreement, [Party A] will notify [Party B] in writing within [X] days. The notification will detail the areas of non-compliance and the corrective actions required. [Party B] will have [X] days to remedy the issues and submit a revised deliverable.
Remedial action clause with provision for early warning system
This version applies to early warning system.
To prevent breaches, [Party B] agrees to implement an early warning system to notify [Party A] of any issues that may lead to a breach. If an issue arises that may result in non-compliance, [Party B] will notify [Party A] within [X] days and take corrective action immediately to prevent further issues.
Remedial action clause with provision for monitoring by a third-party expert
This version applies to third-party expert monitoring.
In cases of repeated breaches or complex issues, both parties agree to appoint a neutral third-party expert to monitor the remedial action process. The third-party will provide regular reports on the progress of the corrective actions and ensure that [Party B] is complying with the remediation plan.
Remedial action clause with provision for incremental correction
This version applies to incremental correction.
If [Party B] is unable to fully resolve a breach immediately, [Party B] may implement incremental corrective actions. These steps must be completed in stages, with regular updates provided to [Party A] regarding progress. Full resolution will be expected within [X] days, with a complete review of all corrective actions upon completion.
Remedial action clause with provision for suspension of payments until remedy
This version applies to suspension of payments.
If [Party B] fails to remedy any breach within the specified period, [Party A] may suspend any remaining payments under this Agreement. Payments will resume only once [Party B] has completed the corrective actions to [Party A]'s satisfaction.
Remedial action clause with provision for dispute resolution
This version applies to dispute resolution.
If [Party A] and [Party B] disagree on the proposed remedial actions, both parties agree to resolve the dispute through mediation or arbitration as outlined in the Dispute Resolution section of this Agreement. During this period, [Party B] will continue to address any issues in good faith.
Remedial action clause with provision for immediate corrective actions
This version applies to immediate corrective actions.
In the event of a breach that severely impacts the performance of the Agreement, [Party B] agrees to take immediate corrective actions to resolve the issue within [X] hours. This includes halting any faulty operations and implementing a temporary fix until a permanent solution is found.
Remedial action clause with provision for project delay notification
This version applies to project delay notification.
If the remedial action causes a delay in the project timeline, [Party B] will immediately notify [Party A] of the delay and provide an updated timeline for completion. The new delivery date will be mutually agreed upon by both parties to ensure minimal disruption to the overall project.
Remedial action clause with provision for impact assessment after corrective action
This version applies to impact assessment.
After corrective actions are taken, [Party A] will assess the impact of the changes to ensure the breach has been effectively addressed. [Party A] will review the revised deliverable and confirm whether the corrective actions have resolved the issue and whether further action is necessary.
Remedial action clause with provision for performance penalty after breach
This version applies to performance penalty.
If [Party B] fails to remedy the breach within the agreed-upon period, [Party A] may apply a performance penalty, calculated as [percentage]% of the total contract value for each day the issue remains unresolved. This penalty will be deducted from the next payment due.
Remedial action clause with provision for ongoing compliance after remedy
This version applies to ongoing compliance.
Following remedial actions, [Party B] agrees to maintain ongoing compliance with the terms of this Agreement. [Party A] reserves the right to conduct periodic reviews of [Party B]'s performance to ensure continued compliance with the specifications and to prevent future breaches.
Remedial action clause with provision for shared corrective actions
This version applies to shared corrective actions.
If the breach is caused by both parties’ actions or omissions, both parties will jointly agree on corrective measures and will share responsibility for implementing the necessary remedial actions. Both parties will contribute resources to ensure timely and effective resolution of the breach.
Remedial action clause with provision for corrective action plan approval
This version applies to corrective action plan approval.
Upon receiving notification of a breach, [Party B] will submit a corrective action plan to [Party A] for approval. The plan will outline the steps that [Party B] will take to resolve the breach. [Party A] will review and approve the plan within [X] days, and the remedial actions will proceed according to the agreed plan.
Remedial action clause with provision for continued support after resolution
This version applies to continued support.
After resolving the breach and implementing the corrective actions, [Party B] will continue to provide support for [X] months to ensure that the solution remains effective. During this support period, [Party A] will monitor the deliverable's performance and notify [Party B] of any issues.
Remedial action clause with provision for corrective action tracking
This version applies to corrective action tracking.
[Party B] will provide a detailed tracking report outlining the progress of the remedial actions. The report will include timelines, responsible parties, and expected outcomes. [Party A] will review these reports regularly to ensure that corrective actions are being implemented according to the plan.
Remedial action clause with provision for extension of performance deadlines
This version applies to extension of deadlines.
If the corrective actions lead to a delay in performance, both parties will agree to an extension of the performance deadlines. The new deadlines will be based on the time needed to resolve the issue and complete the remaining deliverables.
Remedial action clause with provision for notifying third parties about remedial actions
This version applies to notifying third parties.
If the breach involves a third-party vendor or contractor, [Party B] agrees to notify the third party and ensure that they take corrective actions to address the breach. [Party A] may request updates on the progress of the third party’s actions.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.