SANCTION PROVISION Meaning and
Definition
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A sanction provision is a clause or section included in a legal contract, agreement, or document that outlines the consequences or penalties that may be imposed if one party fails to fulfill their obligations, breaches the terms, or violates certain rules. It sets out the authorized actions or measures that can be taken by the other party or a governing entity to enforce compliance, seek compensation, or mitigate damages.
Typically, a sanction provision specifies the nature and severity of the sanctions that can be imposed. These sanctions may range from monetary fines, liquidated damages, or compensatory payments, to more severe measures such as termination of the contract, suspension of rights, or injunctive relief. The provision may also outline the process or procedure that must be followed before sanctions can be invoked, such as providing notice, opportunity to cure, or dispute resolution mechanisms.
Sanction provisions play a crucial role in contract management by ensuring that both parties are aware of the potential consequences of non-compliance or wrongdoing. They are designed to protect the rights and interests of the party seeking enforcement, while also providing a clear framework for resolving disputes and encouraging parties to fulfill their contractual obligations.
Overall, sanction provisions establish a mechanism to deter non-performance or misconduct, and promote accountability and fairness in the execution of contractual relationships.
Common Misspellings for SANCTION PROVISION
- aanction provision
- zanction provision
- xanction provision
- danction provision
- eanction provision
- wanction provision
- sznction provision
- ssnction provision
- swnction provision
- sqnction provision
- sabction provision
- samction provision
- sajction provision
- sahction provision
- sanxtion provision
- sanvtion provision
- sanftion provision
- sandtion provision
- sancrion provision
- sancfion provision
Etymology of SANCTION PROVISION
The word "sanction" comes from the Latin word "sanctio", meaning "approval" or "stipulation". It was originally derived from the verb "sanctiare", which means "to make holy" or "to legalize".
The word "provision" also has Latin roots, originating from the Latin word "provisio", meaning "a foresight or provision". It is derived from the verb "providere", which means "to foresee" or "to prepare".
When referring to a "sanction provision", the term combines the concept of approving or legalizing something ("sanction") with the idea of making arrangements or preparations for it ("provision"). In this context, a sanction provision typically refers to a section or clause in a legal or regulatory document that specifies the approvals, penalties, or consequences related to a particular action or behavior.
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