Effect of Later Determination Clause Samples
The "Effect of Later Determination" clause defines how the rights and obligations of the parties are affected if a fact, amount, or status relevant to the agreement is determined or clarified after an initial action or decision has been made. In practice, this clause typically applies when a payment, adjustment, or performance is made based on an estimate or assumption, and a later event or calculation reveals the actual figure or outcome. For example, if a party pays an estimated amount subject to later verification, this clause would specify how any overpayment or underpayment is to be corrected. Its core function is to ensure fairness and accuracy by providing a mechanism to adjust for discrepancies that arise from later determinations, thereby reducing disputes and uncertainty.
Effect of Later Determination. In the event the parties agree or a court of competent jurisdiction determines (or the parties agree to settle with a consent determination) that a default is wrongful or not the fault of the Contractor, the termination shall be considered to be a Termination for Convenience and the sole remedy available to the Contractor shall be the contractual treatment of the termination as termination for convenience pursuant to Section 23.0 above and without any other damages or relief.