Common use of DEFAULT BEFORE DELIVERY OF THE VESSEL Clause in Contracts

DEFAULT BEFORE DELIVERY OF THE VESSEL. (a) If any default by the BUYER occurs as defined in Paragraph 1 (a) or 1 (b) or 1 (c) of this Article, the Delivery Date shall, at the SELLER's option, be postponed for a period of continuance of such default by the BUYER. (b) If any such default as defined in Paragraph 1 (a) or 1 (b) or 1 (c) of this Article committed by the BUYER continues for a period of fifteen (15) New York business days starting from the date the BUYER receives the SELLER’s notice of default referred to in Article XI paragraph 2, then, the SELLER shall have all of the following rights and remedies: (i) The SELLER may, at its option, rescind this Contract, provided that the SELLER has notified the BUYER of such default pursuant to Paragraph 2 of this Article, by giving notice of such effect to the BUYER by telefax confirmed in writing. Upon receipt by the BUYER of such telefax notice of rescission, all of the BUYER's Supplies shall forthwith become the sole property of the SELLER, and the VESSEL and all its equipment and machinery shall be at the sole disposal of the SELLER for sale or otherwise; and (ii) In the event of such rescission of this Contract, the SELLER shall be entitled to retain any instalment or instalments of the Contract Price paid by the BUYER to the SELLER on account of this Contract.

DEFAULT BEFORE DELIVERY OF THE VESSEL. (a) If any default by the BUYER occurs as defined in Paragraph 1 I (a) or 1 (b) or 1 (c) of this Article, the Delivery Date shall, at the SELLER's ’s option, be postponed for a period of continuance of such default by the BUYER. (b) If any such default as defined in Paragraph 1 (a) or 1 (b) or 1 (c) of this Article committed by the BUYER continues for a period of fifteen (15) New York business days starting from the date the BUYER receives the SELLER’s notice of default referred to in Article XI paragraph 2days, then, the SELLER shall have all of the following rights and remedies: (i) The SELLER may, at its option, cancel or rescind this Contract, provided that the SELLER has notified the BUYER of such default pursuant to Paragraph 2 of this Article, by giving notice of such effect to the BUYER by telefax confirmed in writingwriting or telefax. Upon receipt by the BUYER of such telefax telex notice of cancellation or rescission, all of the BUYER's ’s Supplies shall forthwith become the sole property of the SELLER, and the VESSEL and all its equipment and machinery shall be at the sole disposal of the SELLER for sale or otherwise; and (ii) In the event of such cancellation or rescission of this Contract, the SELLER shall be entitled to retain any instalment installment or instalments installments of the Contract Price paid by the BUYER to the SELLER on account of this Contract.