Common use of Suspension and Termination in the Event of an Injunction Clause in Contracts

Suspension and Termination in the Event of an Injunction. A party may suspend performance under this Agreement in whole or in part with immediate effect if, (i) as a result of a claim alleging facts that would constitute a breach of the other party’s representations and warranties made in Section 5 or (ii) due to the other party’s failure to comply with applicable laws, such party is obliged by final or temporary court order or magisterial decision to temporarily or permanently refrain from continuing to perform its obligations under this Agreement. The suspending party’s rights under clause (ii) of this provision shall become effective on the date of the court order or magisterial decision or on the date of the service of the order irrespective of the possibility of appeal. The suspending party shall use commercially reasonable efforts to notify other party of any suspension under this paragraph. If any suspension under this paragraph continues for more than ninety (90) days, either party may terminate this Agreement with immediate effect.