Differential Settlement Sample Clauses

A Differential Settlement clause defines how payments or obligations are adjusted between parties based on differences in values, prices, or performance metrics at settlement. In practice, this clause is commonly used in financial contracts, such as derivatives or swaps, where the final payment is calculated by comparing the contract's reference value to the actual market value at settlement. The core function of this clause is to ensure that only the net difference is exchanged, simplifying transactions and reducing the need for full delivery or transfer of the underlying asset.