A Legal Guide To TECHNOLOGY TRANSACTIONS A COVID-19 Update…

NEGOTIATE PROGRESSIVE PAYMENT SCHEDULE

As payment terms often dictate deliverables and provide a chance for parties to evaluate their progress, setting out these terms clearly can save hassle and side-step unmet expectations. Some important questions to consider:

• How are payments made, and when?

• Fixed lump sum?

• Fixed periodic fee?

• Time and materials or other variable?

• Is payment based on performance?

• Upon execution of contract?

• Upon delivery or installation?

• Completion of training?

• Upon completion of acceptance testing?

• Upon productive use or when system goes live?

• Specified number of days after any one of the preceding events?

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