Common use of Defaults by Purchaser Clause in Contracts

Defaults by Purchaser. 3. In the event PURCHASER fails to make any payments due under this Contract, fails or refuses to sign any documents required to close title, refuses to pay any costs required by this Contract or fails to keep any promises made by PURCHASER pursuant to this Contract, SELLER shall provide written notice of PURCHASER's failure (also known as a default). If PURCHASER fails to correct said default within fifteen (15) days after receipt of notice from SELLER, SELLER may terminate this Contract, and retain the down payment made hereunder. The amount retained by SELLER shall be considered "liquidated damages" based upon an understanding between the parties hereto that SELLER will have suffered damages due to the withdrawal of the PREMISES from sale to the general public. The damages suffered by SELLER as a result will be substantial, but incapable of determination with mathematical precision. It is, therefore, agreed by the parties that the amount retained by SELLER is not a penalty, but rather a mutually beneficial estimate of damages suffered by SELLER.