Common use of Potential Default Clause in Contracts

Potential Default. The Recipient must notify the Department immediately and provide details of any event or circumstance which does not fall within the scope of clause 17 and which is likely to result in a delay to the performance of the Project, a Milestone not being achieved within the timeframe specified in the Milestone Schedule, or give rise to a right of termination pursuant to clause 19.1 with the giving of notice or the passage of time. The Recipient must comply with any reasonable directions of the Department and cooperate with the Department in order to avoid an actual breach or event of default under this Agreement occurring. No action taken by the parties, or directed by the Department, under this clause 19.2 will relieve the Recipient from, or alter or affect, the Recipient's liabilities or responsibilities, or the Department’s rights, under this Agreement or according to Law.

Potential Default. The Recipient must notify the Department immediately and provide details of any event or circumstance which does not fall within the scope of clause 17 and 17and which is likely to result in a delay to the performance of the Project, a Milestone not being achieved within the timeframe specified in the Milestone Schedule, or give rise to a right of termination pursuant to clause 19.1 with the giving of notice or the passage of time. The Recipient must comply with any reasonable directions of the Department and cooperate with the Department in order to avoid an actual breach or event of default under this Agreement occurring. No action taken by the parties, or directed by the Department, under this clause 19.2 will relieve the Recipient from, or alter or affect, the Recipient's liabilities or responsibilities, or the Department’s rights, under this Agreement or according to Law.