Common use of Effect of Default on or before Delivery of VESSEL Clause in Contracts

Effect of Default on or before Delivery of VESSEL. (a) Should the BUYER make default in payment of any instalment of the Contract Price on or before delivery of the VESSEL, the BUYER shall pay the instalment(s) in default plus accrued interest thereon at the rate of Six percent (6.0%) per annum computed from the due date of such instalment to the date when the BUILDER receives the payment, and, for the purpose of Paragraph 1 of Article VII hereof the Delivery Date of the VESSEL shall be automatically extended by the period of continuance of such default by the BUYER. In any event of default by the BUYER, the BUYER shall also pay direct charges and expenses incurred by the BUILDER in consequence of such default after mutual agreement. (b) If any default by the BUYER continues for a period of Ten (10) days after the BUILDER’s notification, the BUILDER may, at its option, rescind this Contract by giving notice of such effect to the BUYER by xxxxxxx confirmed in writing. Upon dispatch by the BUILDER of such notice of rescission, this Contract shall be forthwith rescinded and terminated. In the event of such rescission of this Contract, the BUILDER shall be entitled to retain any instalment or instalments already paid by the BUYER to the BUILDER on account of this Contract and the BUYER’s Supplies, if any.

Effect of Default on or before Delivery of VESSEL. (a) Should the BUYER make default in payment of any instalment of the Contract Price on or before delivery of the VESSEL, the BUYER shall pay the instalment(s) in default plus accrued interest thereon at the rate of Six percent (6.0%) per annum computed from the due date of such instalment to the date when the BUILDER receives the payment, and, for the purpose of Paragraph 1 of Article VII hereof the Delivery Date of the VESSEL shall be automatically extended by the period of continuance of such default by the BUYER. In any event of default by the BUYER, the BUYER shall also pay direct charges and expenses incurred by the BUILDER in consequence of such default after mutual agreement. (b) If any default by the BUYER continues for a period of Ten (10) days after the BUILDER’s notification, the BUILDER may, at its option, rescind this Contract by giving notice of such effect to the BUYER by xxxxxxx telefax confirmed in writing. Upon dispatch by the BUILDER of such notice of rescission, this Contract shall be forthwith rescinded and terminated. In the event of such rescission of this Contract, the BUILDER shall be entitled to retain any instalment or instalments already paid by the BUYER to the BUILDER on account of this Contract and the BUYER’s Supplies, if any.

Effect of Default on or before Delivery of VESSEL. (a) Should the BUYER make default in payment of any instalment installment of the Contract Price on or before delivery of the VESSEL, the BUYER shall pay the instalment(sinstallment(s) in default plus accrued interest thereon at the rate of Six percent (6.0Seven percent(7%) per annum computed from the due date of such instalment installment to the date when the BUILDER receives the payment, and, for the purpose of Paragraph 1 of Article VII hereof the Delivery Date of the VESSEL shall be automatically extended by the period of continuance of such default by the BUYER. In any event of default by the BUYER, the BUYER shall also pay direct all charges and expenses incurred by the BUILDER in consequence of such default after mutual agreementdefault. (b) If any default by the BUYER continues for a period of Ten Twenty (1020) days after the BUILDER’s notificationdays, the BUILDER may, at its option, rescind cancel this Contract by giving notice of such effect to the BUYER by xxxxxxx telefax confirmed in writing. Upon dispatch by the BUILDER of such notice of rescissioncancellation, this Contract shall be forthwith rescinded cancelled and terminated. In the event of such rescission cancellation of this Contract, the BUILDER shall be entitled to retain any instalment installment or instalments installments already paid by the BUYER to the BUILDER on account of this Contract and the BUYER’s Supplies, if any.