This form is a sample agreement between the owner of property and the contractor agreeing that acceptance by contractor of late payments as described in the agreement do not constitute a waiver of the right to receive timely payments pursuant to the agreement in the future.
A Tennessee Non-Waiver Agreement between a Contractor and Owner Regarding Accepting Late Payments is a legal document that outlines the terms and conditions for accepting delayed payments from the owner or client. This agreement protects both parties by establishing a clear understanding and agreement regarding late payment situations. Contractors often rely on prompt payments to cover project expenses, so having a well-defined agreement is essential. There can be various types of Tennessee Non-Waiver Agreements between a Contractor and Owner Regarding Accepting Late Payments, depending on the specific terms and conditions agreed upon. Some potential variations may include: 1. Timeframe Clause: This clause specifies the maximum number of days allowed for a late payment to be considered acceptable. For example, the agreement might state that any payment received within 30 days of the due date will not be subject to penalties or additional fees. 2. Penalty Provision: This provision outlines the consequences for late payments. It may include charging interest on the unpaid amount or flat fees for each day the payment is overdue. The penalty provision serves as a deterrent for late payments and encourages the owner to pay promptly. 3. Notice Requirement: This clause requires the owner to provide advance notice if they anticipate a delayed payment. The notice should include a valid reason for the delay and an estimated payment date. This provision enables the contractor to plan and adjust their finances accordingly, minimizing any negative impacts caused by delayed payments. 4. Waiver of Rights: This section clarifies that accepting late payments in some instances does not waive the contractor's right to enforce prompt payment for future transactions. It ensures that a one-time acceptance of a late payment does not set a precedent or eliminate the contractor's ability to request timely payments in the future. 5. Dispute Resolution: In case of any disagreements or disputes regarding late payments, this clause outlines the procedures to be followed for resolving the issue. It may require the parties to engage in mediation or arbitration to settle the matter instead of resorting to costly litigation. Drafting a Tennessee Non-Waiver Agreement between a Contractor and Owner Regarding Accepting Late Payments is crucial for both parties involved. It helps establish a professional relationship built on trust, ensure financial stability for the contractor, and provide a clear framework for resolving any payment-related issues that may arise during the project.
