Common use of Rescission of the Agreement Clause in Contracts

Rescission of the Agreement. 1. Menlo is entitled to rescind from the whole or a part of the Agreement or Order/Purchase Order, as the case may be, upon occurrence of extraordinary circumstances beyond Menlo’s control, including Force Majeure referred to in Section 12.1, mandatory changes of law or extraordinary adverse changes of the market conditions such as currency and goods price fluctuations or any adverse material reason attributable to the Purchaser, within 3 (three) months from its conclusion/placing, by submitting to the Purchaser a statement on rescission which shall include reasons for such rescission (contractual right of withdrawal). 2. In the event of rescission by Xxxxx from the Agreement and arising Order/Purchase Order, for reasons attributable to the Purchaser, Menlo shall be entitled to retain for its benefit a compensation in an amount equivalent to 5% of the gross value of the Order. 3. Upon the rescission of the Agreement, unless stated otherwise, the parties shall be released from their obligations arising under the Agreement, except for the obligations under Section 13 which shall remain unaffected by the rescission.