This is an Internet Service Provider service agreement (contract) with a mythical
company to provide internet access and services. This contract has a liquidated damages provision in paragraph 3(E) to be paid if the Use Policy is breached. Pursuant to a liquidated damage provision, upon a party's breach, the other party will recover this amount of damages whether actual damages are more or less than the liquidated amount.
Keywords: North Carolina, service agreement, internet service provider, subscriber, liquidated damage, exculpatory provision. In North Carolina, a service agreement between an Internet Service Provider (ISP) and a subscriber is a legally binding document that outlines the terms and conditions of the service being provided. Such agreements often include provisions related to liquidated damages and exculpatory clauses. Liquidated damages provision refers to a predetermined amount of money agreed upon by both parties that will be paid by the party in breach of the agreement. This provision serves as a way to estimate the potential actual damages that could occur as a result of a breach. It protects the ISP by providing them with a specified amount of compensation in case the subscriber fails to meet their obligations. The exculpatory provision, on the other hand, is a clause that aims to release one or both parties from liability for specific types of damages or losses. It is designed to limit the liability of the ISP for certain events or actions that may occur during the provision of internet services. In other words, it seeks to protect the ISP from being held responsible for damages resulting from events beyond their control, such as service disruptions due to power outages or natural disasters. There may be different types of service agreements in North Carolina between an ISP and a subscriber with liquidated damages and exculpatory provisions, such as: 1. Residential Service Agreement: This type of agreement is entered into between an ISP and an individual subscriber for personal use at a residential property. 2. Business Service Agreement: This agreement is tailored for businesses that require internet services for their operations. It may include additional provisions specific to the needs of the commercial subscriber, such as guaranteed uptime or technical support. 3. Service Level Agreement (SLA): An SLA is a more comprehensive and detailed agreement that specifies the level of service to be provided by the ISP. It usually includes specific service metrics, performance standards, and remedies for breaches or failures to meet the agreed-upon service levels. This type of agreement may have more rigorous liquidated damages and exculpatory provisions to address service-level guarantees and potential damages incurred by the subscriber. It is important for both parties to carefully review and understand the terms and conditions of the service agreement before entering into the contract. Subscribers should pay close attention to the liquidated damages and exculpatory clauses to ensure that their rights are protected, while ISPs should ensure that the provisions are fair and reasonable considering the nature of the services being provided.
