Common use of Sanctions in the case of breach of agreement Clause in Contracts

Sanctions in the case of breach of agreement. In the case of a breach of agreement, the NPD may withold a proportionate part of the payment. The NPD may also demand a refund for remuneration and costs which the supplier has received, with a deduction for any benefit to the NPD. Such price reductions are meant to compensate for the reduced value of the services delivered, and come in addition to a possible restitution. If a breach of agreement is of significance to the NPD and cannot be rectified without significant expense or inconvenience, the NPD is, following a written notification and a reasonable amount of time to rectify matters, entitled to terminate the agreement with immediate effect. The NPD may demand restitution for any direct loss which one might reasonably have been able to foresee as a possible consequence of the breach. Losses due to extra work or other costs or expenses which the NPD has incurred as a result of the breach, will be counted as direct losses. No restitution will be demanded for indirect losses. Loss of income, loss of turnover or loss of expected savings are deemed indirect losses. Restitution will be limited to an amount corresponding to the agreed remuneration excluding VAT or the maximum estimate agreed for the project. If the supplier or anyone in his charge demonstrates gross negligence or intent, the above liability limits do not apply.

Sanctions in the case of breach of agreement. In the case of a breach of agreementAgreement, the NPD may withold withhold a proportionate part of the payment. The NPD may also demand a refund for remuneration and costs which the supplier Supplier has received, with a deduction for any benefit to the NPD. Such price reductions are meant to compensate for the reduced value of the services delivered, and come in addition to a possible restitution. If a breach of agreement Agreement is of significance to the NPD and cannot be rectified without significant expense or inconvenience, the NPD is, following a written notification and a reasonable amount of time to rectify matters, entitled to terminate the agreement Agreement with immediate effect. The NPD may demand restitution for any direct loss which one might reasonably have been able to foresee as a possible consequence of the breach. Losses due to extra work or other costs or expenses which the NPD has incurred as a result of the breach, will be counted as direct losses. No restitution will be demanded for indirect losses. Loss of income, loss of turnover or loss of expected savings are deemed indirect losses. Restitution will be limited to an amount corresponding to the agreed remuneration excluding VAT or the maximum estimate agreed for the project. If the supplier Supplier or anyone in his charge demonstrates gross negligence or intent, the above liability limits do not apply.