Common use of Non-Fulfilment Clause in Contracts

Non-Fulfilment. In the event of non-compliance by either Party, the other Party at his discretion shall, after giving notice, have the right to cancel the contract on basis the market price at the date of default. In case of any dispute over the date of default or on the market price on that day, the matter shall be referred to Arbitration. The following procedure shall be adopted: i. If the Seller is in default and if at the date of default the market price of the contracted product to be shipped is higher than the contract price, the Seller shall be charged with the difference between the market price and contract price. ii. If the Buyer is in default and if at the date of default the market price of the contracted product to be shipped is lower than the contract price, the Buyer shall be charged with the difference between market price and contract price.

Non-Fulfilment. In the event of non-compliance by either Party, the other Party at his discretion shall, after giving notice, have the right to cancel the contract on basis of the market price at the date of default. In case of any dispute over the date of default or on the market price on that day, the matter shall be referred to Arbitration. The following procedure shall be adopted: i. If the Seller is in default and if at the date of default the market price of the contracted product to be shipped is higher than the contract price, the Seller shall be charged with the difference between the market price and contract price. ii. If the Buyer is in default and if at the date of default the market price of the contracted product to be shipped is lower than the contract price, the Buyer shall be charged with the difference between market price and contract price.