Common use of Effect of BUYER's Default Clause in Contracts

Effect of BUYER's Default. (a) If any default by the BUYER occurs as defined in Paragraph 1(a), (b) and (c) of this Article, the Delivery Date shall be automatically postponed for the period of continuance of such default by the BUYER. (b) If any such default by the BUYER continues for a period of five (5) business days, the BUILDER may, at its option, notify BUYER in accordance with Article XXII of BUILDER's intention to cancel the Contract, and if BUYER does not remedy the default within thirty (30) business days after receipt of such notice, BUILDER may cancel this Contract by giving notice to such effect to the BUYER in accordance with Article XXII. In the event of such cancellation of this Contract, the BUILDER shall be entitled to retain any installment or installments previously paid by the BUYER to the BUILDER on account of this Contract (it being understood by both parties that retention of any such installments by BUILDER is by way of liquidated damages and not by way of penalty). (c) BUYER shall not under any circumstances be responsible or liable to BUILDER, its contractors or subcontractors, for any consequential or special losses, damages or expenses including, but not limited to, loss of time, loss of profit or earnings whether directly or indirectly arising out of this Contract.

Effect of BUYER's Default. (a) If any default by the BUYER occurs as defined in Paragraph 1(a1 (a), (b) and (c) of this Article, the Delivery Date shall be automatically postponed for the period of continuance of such default by the BUYER. (b) If any such default by the BUYER continues for a period of five (5) business days, the BUILDER may, at its option, notify BUYER in accordance with Article XXII of BUILDER's intention to cancel the Contract, and if BUYER does not remedy the default within thirty (30) business days after receipt of such notice, BUILDER may cancel this Contract by giving notice to such effect to the BUYER in accordance with Article XXII. In the event of such cancellation of this Contract, the BUILDER shall be entitled to retain any installment or installments previously paid by the BUYER to the BUILDER on account of this Contract (it being understood by both parties that retention of any such installments by BUILDER is by way of liquidated damages and not by way of penalty). (c) BUYER shall not under any circumstances be responsible or liable to BUILDER, its contractors or subcontractors, for any consequential or special losses, damages or expenses including, but not limited to, loss of time, loss of profit or earnings whether directly or indirectly arising out of this Contract.