Finance:Bonus clause
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Revision as of 09:55, 5 August 2021 by imported>PolicyEnforcerIA (attribution)
| Contract law |
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| Part of the common law series |
| Contract formation |
| Defenses against formation |
| Contract interpretation |
| Excuses for non-performance |
| Rights of third parties |
| Breach of contract |
| Remedies |
| Quasi-contractual obligations |
| Related areas of law |
| Other common law areas |
A bonus clause is a clause in a contract that rewards the contractor for doing more than the letter of the contract; particularly, to finish the job early. It is in apposition to a penalty clause where the contractor loses by providing less than the letter of the contract, or providing it later than agreed.
The aim of a bonus clause is to give a win-win situation whereby the contractor wins by getting more money for finishing early, and the holder of the contract wins by having a product earlier to market.
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