Triggered Obligation Provision

A Triggered Obligation Provision is a obligation provision (stipulates contractual obligations) with is a conditional contractual provision (which becomes enforceable under predetermined triggering conditions).

• Context:
  • It can (typically) specify the Trigger Event, Obligated Party, Required Action, Manner of Performance, and Objective of the Action.
  • It can be part of broader contract sections like Damage and Destruction Clause or Maintenance and Repair Section within a Lease Agreement.
  • It can provide a framework for enforceable actions in various contractual scenarios, from lease agreements to service contracts.
  • ...
• Example(s):
  • a Late Payment Interest Provision with a trigger of payment being overdue by a specified number of days, such as:
    • "If the Tenant fails to pay the monthly rent within 5 days of the due date, a late payment interest of 5% per month will be applied to the outstanding amount."
  • a Termination for Breach Provision with a trigger of one party materially breaching the contract, such as:
    • "If either party materially breaches any term of this Agreement and fails to cure such breach within 30 days of receiving written notice, the non-breaching party may terminate the Agreement immediately."
  • a Casualty Damage Repair Provision with a trigger of the leased premises being damaged by casualty, such as:
    • "Upon casualty damage, the Lessor is to begin and continue repairs to the Leased Premises in a timely and thorough manner, with the aim of restoring to its prior condition."
  • a Service Level Agreement Performance Penalty Provision with a trigger of the service provider failing to meet the specified system uptime, such as:
    • "If the Service Provider fails to achieve a system uptime of 99.9%, a penalty of 5% of the monthly service fee will be imposed for each 0.1% below the target."
  • a Data Breach Notification Provision with a trigger of the company discovering a data breach, such as:
    • "In the event of a data breach, the Company must notify all affected customers within 72 hours of its discovery."
  • ...
• Counter-Example(s):
  • Conditional Permission Provisions, which ...
  • Unconditional Obligation Provisions, which ...
  • ...
• See: Contract Provision, Lease Agreement, Damage and Destruction Clause, Maintenance and Repair Section, Service Level Agreement

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References

2024

• Claude 3
  • Triggered Obligation Provisions serve as contract mechanisms that specify conditions under which obligations become enforceable.
  • Here is a list of the basic components that most triggered obligation provisions typically include:
    1. Contractual Triggering Event: A clear description of the specific event, circumstance, or condition that will trigger the obligation. This could be a date, an action taken by a contracting party, or a particular outcome.
    2. Contractual Obligated Party: Identification of the party or parties who will be required to perform the obligation once the triggering event occurs.
    3. Contractual Obligation or Duty: A detailed description of the specific action, task, or duty that the obligated party must perform or fulfill upon the occurrence of the triggering event.
    4. Contractual Time Frame: The time period within which the obligated party must fulfill the obligation after the triggering event has occurred. This could be immediately, within a specified number of days, or by a particular date.
    5. Contractual Performance Standards: Any specific requirements, standards, or criteria that the obligated party must meet when fulfilling the obligation to ensure satisfactory performance.
    6. Contractual Consequences of Non-Performance: The legal consequences that will apply if the obligated party fails to perform the required obligation within the specified time frame or to the required standards. This may include damages, termination rights, or other penalties.
    7. Contractual Exemptions: Any specific circumstances under which the obligated party may be excused from performing the obligation, such as force majeure events or other agreed-upon exceptions.
    8. Contractual Notice Requirements: Any requirements for the parties to provide notice to each other regarding the occurrence of the triggering event, the fulfillment of the obligation, or any other relevant matters.
    9. Contractual Dispute Resolution: The agreed-upon methods for resolving any disputes that may arise in connection with the triggered obligation provision, such as mediation, arbitration, or litigation.
    10. Contractual Definitions: Clear definitions of any key terms used within the triggered obligation provision to ensure all [[Parties in a Contract|part

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