Notification and Corrective Action Clause Samples
The Notification and Corrective Action clause establishes the process by which one party must inform the other of a breach, defect, or non-compliance, and outlines the steps required to address and remedy the issue. Typically, this clause specifies the timeframe within which notice must be given and may detail the method of notification, such as written communication. It also sets out the obligations of the party at fault to correct the problem within a certain period. The core function of this clause is to ensure that issues are promptly identified and resolved, minimizing disruption and providing a clear mechanism for addressing problems in the contractual relationship.
Notification and Corrective Action. In the event of a Service Level Deficiency, the Board of Trustees of the Fund may provide written notification (a “Deficiency Notice”) to the Administrator requesting that the Administrator modify its procedures or takes such other corrective action as may be reasonably required to resolve the causes of such Service Level Deficiency. Upon receipt of a Deficiency Notice, the Administrator shall have at least 30 days (or such other period as the parties may agree) (“Cure Period”) to implement corrective action with respect to such Service Level Deficiency. If such efforts are successful in correcting the Service Level Deficiency in the agreed upon period (“Cure”), the Trust shall have no other rights with respect to such Service Level Deficiency under this Service Level Agreement. In the event that the Administrator fails to Cure the Service Level Deficiency during the Cure Period, the Board of Trustees in its sole discretion may require that the Administrator issue a credit to the Trust on the Administrator’s next monthly invoice equal to $10,000 or the actual damages, whichever amount is greater, and for each month thereafter until the Cure has been effected.
Notification and Corrective Action