The following Practice Compliance guidance note provides comprehensive and up to date legal information covering:
This Practice Note explains the usual remedies for breach of an outsourcing agreement, with a particular focus on step-in rights and their interaction with other remedies. It also discusses the practical aspects of enforcing step-in rights and the key concerns that commonly arise in negotiations about step-in rights.
An outsourcing agreement will typically include a raft of remedies that you can call on in the event of supplier default or other situations where you may need to interpose in the provision of the relevant services. The main remedies are:
step-in rights, ie the right to temporarily intervene in the provision of the services: see Step-in rights below
service credits—an amount that is offset against what you owe the supplier to compensate for its failure to achieve agreed service levels: see Service credits below
liquidated damages, ie the parties
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