This SLA Payment Terms document is essential for businesses operating under Dutch jurisdiction that need to establish clear, legally compliant payment terms within their service level agreements. It should be used when parties require a detailed framework for financial obligations, invoicing procedures, and payment conditions in service-based relationships. The document addresses key requirements under Dutch law, including maximum payment terms, late payment interest, and VAT considerations. It is particularly relevant when the service relationship involves regular payments, service credits, or performance-based financial adjustments. The SLA Payment Terms incorporate both mandatory provisions required by Dutch law and customary commercial terms, making it suitable for both domestic and international service arrangements where Dutch law governs the relationship.
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1. Parties: Identification and details of the service provider and customer, including registered addresses and company details
2. Background: Context of the agreement and reference to any master service agreement or related contracts
3. Definitions: Definitions of key terms used throughout the document, including payment-related terminology
4. Service Fee Structure: Detailed breakdown of fees, rates, and pricing model for the services
5. Payment Terms: Payment deadlines, payment methods, currency, and billing frequency
6. Invoicing Procedures: Process for invoice generation, delivery, and required invoice content under Dutch law
7. Late Payment Consequences: Interest rates, penalties, and remedies for late payment in accordance with Dutch law
8. Dispute Resolution: Procedures for handling payment disputes and invoice queries
9. VAT and Taxation: Treatment of VAT, other applicable taxes, and related responsibilities
10. Term and Termination: Duration of the payment terms and conditions for termination
11. Governing Law and Jurisdiction: Confirmation of Dutch law application and jurisdiction
1. Service Credits: System for calculating and applying service credits against fees when service levels are not met
2. Volume Discounts: Structure for volume-based pricing and discounts if applicable
3. Currency Exchange: Terms for handling multiple currencies and exchange rates if international payments are involved
4. Electronic Invoicing: Specific terms for electronic invoicing systems and processes if used
5. Payment Security: Additional terms for securing payments, such as bank guarantees or parent company guarantees
6. Audit Rights: Terms allowing audit of payment-related records and processes
7. Force Majeure Impact on Payments: How force majeure events affect payment obligations
8. Third-Party Payment Processors: Terms relating to the use of payment processing services if applicable
1. Schedule 1 - Fee Schedule: Detailed breakdown of all fees, rates, and pricing components
2. Schedule 2 - Service Levels and Measurements: Specific service levels that affect payment terms and service credits
3. Schedule 3 - Invoice Template: Standard format for invoices complying with Dutch legal requirements
4. Schedule 4 - Service Credit Calculation: Detailed methodology for calculating service credits and penalties
5. Schedule 5 - Payment Processing Procedures: Step-by-step procedures for payment processing and reconciliation
6. Appendix A - Authorized Bank Accounts: List of approved bank accounts for payments
7. Appendix B - Contact Details: Contact information for billing, payment, and dispute resolution
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