sanctions clause
[ˈsæŋk.ʃənz klɔːz]
nounpl: sanctions clauses
cláusula de sanções
1. A contractual provision that specifies penalties or remedies to be imposed if one party fails to fulfill its obligations under the agreement
The sanctions clause in the employment contract stipulates that breach of confidentiality will result in a fine of $50,000.
A cláusula de sanções no contrato de trabalho estipula que a violação da confidencialidade resultará em uma multa de $50.000.
2. A legal provision outlining punitive measures, including fines, penalties, or other consequences for non-compliance with contractual terms
The international trade agreement includes a sanctions clause to enforce compliance with environmental standards.
O acordo comercial internacional inclui uma cláusula de sanções para garantir o cumprimento dos padrões ambientais.
This term is essential in both Brazilian and American business and legal contexts. In Brazil, sanctions clauses are commonly used in commercial contracts, employment agreements, and international trade agreements. The concept reflects the importance of enforcing contractual obligations through predetermined penalties rather than litigation. In the United States, sanctions clauses are a standard feature of sophisticated contracts and are often negotiated heavily between parties to balance risk allocation.
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