Common use of Penalty for short delivery Clause in Contracts

Penalty for short delivery. MCWD shall without notice, impose a penalty of one hundred percent (100%) of the Contract Price per cubic meter for SHORT DELIVERY (SD), or delivery below the minimum hourly flow rate, except if attributable to force majeure as defined in Article XIV - “No Liability in Cases of Fortuitous Events or Force Majeure” and computed as follows: Penalty (SD) = (Contract Price per cu. m.) x (Undelivered Volume)