Genuine Dispute Clause Samples
The Genuine Dispute clause defines the process and conditions under which parties may withhold payment or performance if there is a legitimate disagreement regarding an obligation under the contract. Typically, this clause allows a party to delay payment or suspend certain duties when they have a bona fide reason to contest an invoice, claim, or performance issue, provided they notify the other party and specify the grounds for the dispute. Its core function is to protect parties from being forced to comply with contested obligations while ensuring that only sincere, substantiated disputes can delay contractual performance, thereby preventing abuse and encouraging prompt resolution of disagreements.
Genuine Dispute. (a) This clause takes precedence over clause 11
(b) If the Client in good faith disputes an amount in an invoice, the Client must notify Powernet in writing within 14 days of the date of invoice (Invoice Dispute Notice). The Invoice Dispute Notice must set out the number of the invoice being disputed, the amount in dispute (Disputed Amount), and the reasons why the Client disputes the Disputed Amount.
(c) If the Client serves an Invoice Dispute Notice in accordance with clause 4.4(a), the Client may withhold payment of the Disputed Amount in accordance with clause 4.4(d), but is not entitled to withhold payment of any undisputed amount owing to Powernet.
(d) Powernet will within 14 days of receipt of the Invoice Dispute Notice, review the relevant invoice, the content of the Invoice Dispute Notice and other facts and circumstances it considers relevant, for the purpose of resolving the dispute. Powernet shall notify the Client of the result of its review, the amount it determines is payable by the Client (if any), and the reasons for its determination. The Client must pay to Powernet the amount determined by Powernet to be due and payable, without deduction or set-off, within 7 days of notification of the determination, failing which Powernet may treat the amount payable under the determination as an overdue payment and invoke the provisions of the Agreement relating to overdue payments including clauses 4.3, 7.1 and 7.2.
(e) If the Client disputes Powernet’s determination it must nevertheless pay the amount determined by Powernet to be payable, but may do so under protest and without admission of liability and invoke the dispute resolution procedure under clause 11.
Genuine Dispute. (a) This clause takes precedence over clause 11
(b) If the Client in good faith disputes an amount in an invoice, the Client must notify Powernet in writing within 14 days of the date of invoice (Invoice Dispute Notice). The Invoice Dispute Notice must set out the number of the invoice being disputed, the amount in dispute (Disputed Amount), and the reasons why the Client disputes the Disputed Amount.
(c) If the Client serves an Invoice Dispute Notice in accordance with clause 4.4(a), the Client may withhold payment of the Disputed Amount in accordance with clause 4.4(d), but is not entitled to withhold payment of any undisputed amount owing to Powernet.
(d) Powernet will within 14 days of receipt of the Invoice Dispute Notice, review the relevant invoice, the content of the Invoice Dispute Notice and other facts and circumstances it considers relevant, for the purpose of resolving the dispute. Powernet shall notify the Client of the result of its review, the amount it determines is payable by the Client (if any), and the reasons for its determination.