Лектор докладно проаналізувала разом з учасниками платіжні положення, а саме:

1. Introduction and Overview of the Payment Clause – вступ і загальний огляд.

2. Practical Drafting and Common Mistakes - Практика складання та типові помилки.

3. Case Analysis – Аналіз кейсів та приклади з реального життя.

4. Q&A Session and Discussion - Сесія запитань та відповідей, обговорення.

У рамках характеристики платіжних положень акцентовано на наступному:

1. Introduction and Overview of the Payment Clause – вступ і загальний огляд

A payment clause is a contractual provision that outlines the terms, timing, method, and conditions under which financial obligations must be fulfilled between parties.

It ensures clarity on issues such as due dates, currency, late fees, and invoicing procedures to help prevent disputes and ensure enforceability.

Types of Limitations of Liability:

• Remuneration Clause: «The obligations under this Agreement are subject to the Remuneration Clause provided in Section 5».

• Financial Terms Clause: «The Financial Terms Clause shall regulate all payment-related matters under this Agreement».

• Billing Terms: «Parties agree to comply with the Billing Terms outlined in Section 5».

A Lexical Breakdown:

1. Compensation Clause - Компенсаційне застереження.

Frequently used in employment agreements, consulting contracts, and independent contractor agreement «The Consultant shall receive compensation as detailed in the Compensation Clause in Section 4».

2. Consideration Clause - Застереження про розгляд.

Standard in contract law, especially where mutual exchange of value is central. «Each party agrees that the terms of the Consideration Clause constitute valid and sufficient consideration under applicable law».

It ensures clarity on issues such as due dates, currency, late fees, and invoicing procedures to help prevent disputes and ensure enforceability.

With the rise of international trade in the 18th and 19th centuries, especially under English common law, more sophisticated payment structures emerged to address credit, risk, and timing issues. The 20th century saw increasing complexity due to globalization, currency fluctuations, and regulatory frameworks like UCC in the U.S. and UNIDROIT principles internationally. Today, payment clauses are essential in aligning financial responsibilities in both domestic and cross-border legal contexts.

2. Practical Drafting and Common Mistakes - Практика складання та типові помилки

Core Structure of a Payment Clause:

• Payment Amount (Fees) - Сума платежу (комісії).

«The Client agrees to pay a subscription fee of $1,000 per month for access to the Provider’s enterprise software platform».

• Payment Schedule - Графік платежів.

«All payments shall be made in advance on the first calendar day of each month».

• Payment Method - Спосіб оплати.

«Payments shall be made by bank transfer to the account specified by the Provider in the invoice».

• Currency – Валюта.

«All amounts under this Agreement shall be payable in Euros (EUR)».

• Late Payment Terms – Умови/наслідки прострочення платежу.

«Any payment not received within ten (10) days after the due date shall accrue interest at a rate of 1.5% per month».

• Taxes – Податки.

«All fees are exclusive of applicable VAT or withholding taxes, which shall be the responsibility of the Client».

• Refund Policy - Політика повернення коштів/відшкодування.

«All payments are nonrefundable, including in cases of early termination or non-use of the Services».

Optional elements:

1. Price adjustment Mechanisms e.g., annual fee increases or inflation indexing.

«The Provider reserves the right to increase the subscription fee by up to 5% annually upon thirty (30) days’ written notice».

2. Deposit requirements.

«The Client shall pay a security deposit equal to one month’s fee, refundable upon termination if no outstanding amounts remain».

3. Formal term.

«Clients with more than 100 users shall receive a 10% discount on the monthly fee».

The main characteristic feature of a payment clause is its precision in defining financial obligations. It must clearly specify what is to be paid, when, how, and under what conditions, leaving little room for ambiguity or misinterpretation.

3. Case Analysis – Аналіз кейсів та приклади з реального життя

A significant recent case concerning payment clauses is MUR Shipping BV v RTI Ltd, decided by the UK Supreme Court in May 2024.

Case Background:

This case centered on a contract requiring freight payments in US dollars. Following US sanctions on RTI's parent company, RTI offered to pay in euros, covering any conversion costs. MUR Shipping invoked a force majeure clause, asserting that the sanctions impeded US dollar payments and refused the euro payments. The Supreme Court ruled in favor of MUR Shipping, emphasizing that a "reasonable endeavours" proviso in a force majeure clause does not obligate a party to accept non-contractual performance unless explicitly stated in the contract terms.

Court's Decision:

This decision underscores the importance of precise drafting in payment clauses, particularly regarding currency specifications and force majeure provisions. It highlights that parties are not required to accept alternative performance methods, such as payments in a different currency, unless the contract explicitly permits such flexibility. The ruling reinforces the principle of contractual certainty and the need for clear terms to avoid disputes over payment obligations.

4. Q&A Session and Discussion - Сесія запитань та відповідей, обговорення

Let`s compare:

• Here are the three main players typically involved in the implementation of a payment clause in a contract:

• Contracting Parties - These are the primary actors who negotiate, agree upon, and fulfill the financial obligations. Each party must clearly understand their rights and duties regarding payment terms. Buyer and Seller / Client and Service Provider.

• Legal Counsel - Lawyers play a crucial role in drafting, reviewing, and enforcing the payment clause to ensure it is legally sound, enforceable across jurisdictions, and aligned with the parties’ intentions. In-House or External Lawyers.

• Financial Player - Banks, escrow agents, or digital payment platforms often facilitate the actual transfer of funds. They may also be responsible for compliance with anti-money laundering (AML) regulations and cross-border financial rules. Financial Institutions or Payment Processors.

Prepayment:

A prepayment clause outlines the terms under which a borrower can pay off a loan or portion of it before its due date without facing penalties. This clause often specifies any conditions or fees associated with early payments, helping borrowers manage their financial obligations more flexibly.

Prepayment clauses can be found in various contracts, most notably:

• Loan Agreements: These often include terms regarding prepayment, detailing how and when borrowers can make additional payments beyond the required schedule.

• Mortgage Contracts: Mortgages frequently include prepayment clauses, which may outline any penalties or discounts associated with paying off the mortgage ahead of schedule. Credit Card Agreements: Some credit card agreements feature terms that allow for prepayment to pay off balances before interest charges apply. Lease

• Agreements: While less common, some lease agreements can contain terms for prepayment, particularly in equipment leases, where prepayment can result in a discounted purchase option.

• Letter of Intent (LOI): To outline preliminary agreement terms including any required prepayment or deposit as a demonstration of commitment before finalizing the contract.