Common use of Cancellation Without Fault of the Incubatee Clause in Contracts

Cancellation Without Fault of the Incubatee. 16.2.1 In the event of cancellation of this Contract by CzechInvest without any fault of the Incubatee, the Incubatee shall, on receipt of CzechInvest’s instructions for cancellation of this Contract, immediately take the necessary steps to implement the instructions. The period by which the Incubatee must implement such instructions shall be determined by CzechInvest after consultation with the Incubatee. 16.2.2 CzechInvest shall indemnify the Incubatee against such part of any loss of profit as is reasonably attributable to the cancellation of this Contract and against any damages resulting from the cancellation of this Contract, in particular against any commitments, liabilities or expenditure which are reasonably and properly incurred by the Incubatee and are directly related to this Contract, in so far as the said commitments, liabilities or expenditure would otherwise represent an unavoidable loss by the Incubatee by reason of the cancellation of this Contract. 16.2.3 The amount of compensation payable under Article 16.2.2 shall be fixed on the basis of documentary evidence produced by the Incubatee and accepted by CzechInvest. In calculating the amount of compensation payable to the Incubatee, CzechInvest shall take account of the proportion of this Contract completed and shall take into account the provisions of Article 16.2.4. 16.2.4 CzechInvest shall in no circumstances be liable to pay any sum which, when added to the other sums paid, due or becoming due to the Incubatee under this Contract by CzechInvest, exceeds the total contractual payments due by CzechInvest to the Incubatee, as set out in Article 7.1.