Cumulative Credits Clause Samples

The Cumulative Credits clause defines how credits, such as financial or service credits, can accumulate over time under a contract. Typically, this clause specifies whether credits earned in one period can be carried forward and combined with credits from subsequent periods, or if they expire after a certain timeframe. For example, if a service provider issues monthly credits for downtime, this clause would clarify if unused credits roll over to the next month or are forfeited. Its core function is to provide clarity on the accumulation and use of credits, preventing disputes and ensuring both parties understand the value and limitations of credits granted under the agreement.