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Punitive action

Action taken by a business customer against a supplier who fails to fulfil the terms of an agreement. Consistently late delivery is a common example of the type of problem that would prompt a customer to take punitive action. Punishment might consist of charge-backs, order cancellation, the threat of contract cancellation, or other measures designed to motivate the supplier to correct the problem.

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  • Part of Speech: noun
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  • Industry/Domain: Law
  • Category: Contracts
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