Damage Prior to Completion Clause Samples
The 'Damage Prior to Completion' clause defines the responsibilities and procedures if the project or property suffers damage before it is officially completed or handed over. Typically, this clause outlines which party—such as the contractor or owner—is liable for repairing or replacing damaged work, and may specify how insurance proceeds are handled or how delays are managed. Its core function is to allocate risk and clarify obligations in the event of unforeseen damage during construction, thereby preventing disputes and ensuring the project can proceed to completion with clear expectations.
Damage Prior to Completion. In the event that prior to Completion the Vessel is lost, destroyed or damaged and such loss, destruction or damage has not been made good by repair or replacement by the Completion Date, then the Buyer may: a complete the purchase for the Purchase Price, less a sum equal to the diminution in value of the Vessel; or b cancel this Agreement by notice in writing to the Seller whereupon the Buyer will be entitled to the return of any moneys paid by the Buyer to the Seller on account of the Purchase Price, and no party shall have any right or claim against the other parties.
Damage Prior to Completion. In the event that prior to Completion any of the Premises, Fixed Assets or Inventory are destroyed or damaged and such destruction or damage has not been made good in all material respects by repair or replacement by the Completion Date, then: a if the destruction or damage is on the Completion Date sufficient to result in:
i a loss in the value of the Fixed Assets and Inventory which is Significant; or
ii a loss or damage to the Premises resulting in a material impact on the Purchaser’s ability to operate the Business following Completion in the Ordinary Course of Business, then the Purchaser may cancel this Agreement by notice in writing to the Vendors whereupon the Purchaser will be entitled to the return of the Deposit and any other moneys paid by the Purchaser to the Vendors on account of the Purchase Price and thereafter this Agreement shall (except for the Surviving Clauses) be of no further force or effect, the parties will be released from their respective obligations under it and no party will have any claim against any other party arising under or in connection with this Agreement; or b if the destruction or damage is on the Completion Date not within the scope of clause 12.1a above or the Purchaser has not given notice of cancellation pursuant to clause 12.1a prior to the time for Completion, then the Purchaser shall complete the purchase of the Shares for the Purchase Price, and any adjustment necessary to reflect such destruction or damage shall be made in arriving at the Working Capital figure in the Completion Working Capital Statement and any reduction in the Purchase Price reflected in those payments to be made on the Adjustment Date.
Damage Prior to Completion. In the event that prior to Completion any of the Transferred Assets are lost, destroyed or damaged and such loss, destruction or damage has not been made good by repair or replacement by the Completion Date, then the following provisions will apply:
a. if the loss, destruction or damage is on the Completion Date sufficient to affect the Purchaser Significantly in the carrying on of the Business as it was before the occurrence of the loss, destruction or damage, the Purchaser may:
i. complete the purchase for the Purchase Price, less a sum equal to the amount of insurance moneys received or receivable by or on behalf of the Vendor in respect of such loss, destruction or damage (plus any insurance excess) provided that no reduction shall be made to the Purchase Price (except to the extent of any insurance excess) if the Vendor’s insurance company has agreed to fully reinstate for the benefit of the Purchaser; or
ii. cancel this Agreement by notice in writing to the Vendor whereupon the Purchaser will be entitled to the return of any moneys paid by the Purchaser to the Vendor on account of the Purchase Price, and neither party shall have any right or claim against the other; or
b. if the loss, destruction or damage is on the Completion Date insufficient to affect the Purchaser Significantly in the carrying on of the Business the Purchaser must complete the purchase for the Purchase Price less a sum equal to the amount of the diminution in value of the Business.