service credit (US)

English translation: a portion of the payment for services

11:19 May 2, 2014
English language (monolingual) [PRO]
Law/Patents - IT (Information Technology)
English term or phrase: service credit (US)
I am working on a service agreement written in the US and have just stumbled across this phrase:

"In the event the Service Providers fails to meet the availability service level target, and provided the Customer has not caused or contributed to any such failure as a result of its own act, omission or breach of the Agreement, and such failure is not caused by any Force Majeure Event, the Customer is entitled to seek the contractual penalty (being a **service credit** of a portion of the service fees), as its remedy for such failure to meet the availability service level target set out in the Agreement"

"The amount of that contractual penalty (service credit) will be calculated using the following formula"

"R = Contractual penalty (Amount of credit)"

What is "service credit" in this context? I tried to find it on the Internet but it only appears in the context of retirement which is not the case here.
I will really appreciate your help.
Anna Dzidowska
Poland
Local time: 23:49
Selected answer:a portion of the payment for services
Explanation:
This clause discusses a penalty to be applied to the provider. In the event, the penalty will be a portion of the payment by the service receiver to the provider. In other words, the payment will be reduced.
Selected response from:

Martin Riordan
Brazil
Local time: 19:49
Grading comment
A big thank you to Martin and all of you :)
4 KudoZ points were awarded for this answer



SUMMARY OF ALL EXPLANATIONS PROVIDED
4 +4a portion of the payment for services
Martin Riordan


Discussion entries: 2





  

Answers


6 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +4
service credit (us)
a portion of the payment for services


Explanation:
This clause discusses a penalty to be applied to the provider. In the event, the penalty will be a portion of the payment by the service receiver to the provider. In other words, the payment will be reduced.

Martin Riordan
Brazil
Local time: 19:49
Native speaker of: Native in EnglishEnglish
PRO pts in category: 8
Grading comment
A big thank you to Martin and all of you :)

Peer comments on this answer (and responses from the answerer)
agree  Charles Davis
1 hr
  -> Thanks, Charles.

agree  jccantrell: sort of. The customer, if he signed up for say 100 hours, and 10 hours was wasted because of this event, the customer will get more hours of use. However, as I see it, no money will change hands.
2 hrs
  -> Thanks, JC. Please see Charles' link above. In this particular case, from the context, it looks as though LESS money will change hands.

agree  Yvonne Gallagher
5 hrs
  -> Thanks, Gallagy!

agree  Naweed Miakhel
2 days 5 hrs
  -> Thanks, Naweed!
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