Common use of Liabilities of Breach of Contract Clause in Contracts

Liabilities of Breach of Contract. 20.1 Any party who has failed to contribute the registered capital in accordance with the provisions of Article 5 of this contract shall be liable to pay penalty charges equal to 1% per month of the registered capital payable to the other party starting from 3 months after the submission date. The other party shall have the right to terminate this contract and claim for damage from the breaching party, in addition to the accumulated penalty charges equal to 3% of the registered capital payable, if capital contribution has been overdue for 6 months. 20.2 If any party does not perform or seriously default under this contract or the Joint Venture's Articles which cause the Joint Venture to cease operation, unable to achieve the targets stated in this contract, bankruptcy or liquidation, the defaulting party shall be treated as default and terminate this contract on his own. The other party shall have the right to issue an "Effective Notice" to termination this contract before the original approved duration, entitled to apply to the original approval authority for termination of this contract and claim for compensation from the default party. The defaulting party shall compensate for damages suffered by the Joint Venture, if both parties agree to continue the Joint Venture. If this contract was breach by one party and cause this contacts or its appendix cannot be partly or wholly be performed, the defaulting party shall bear all the responsibilities.