Legal Term
vendor service level agreement penalty enforcement
Legal Definition
The legal mechanism by which a client or customer imposes predetermined financial or remedial sanctions on a vendor for failing to meet specified performance metrics outlined in a service level agreement (SLA).
In Plain English
When a service provider doesn't deliver what they promised in their contract, the customer can enforce penalties like fines or service credits to hold them accountable.
Example in a Contract
Section 5.2: Service Credits for Downtime. If Vendor's system availability falls below 99.5% in any calendar month, Client shall receive a service credit equal to 2% of that month's total fees for each 0.1% shortfall, applied to the next invoice.
This content is for informational purposes only and does not constitute legal advice. Always consult a licensed attorney for legal matters.