Incentive Contract
/ɪnˈsɛntɪv ˈkɒntrækt/
Definitions
- (n.) A contract that includes provisions offering rewards or penalties to encourage specific performance or outcomes.
The company signed an incentive contract to motivate timely project completion.
Forms
- incentive contract
- incentive contracts
Related terms
See also
Commentary
In drafting, clearly define the performance metrics triggering incentives to avoid disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.