Termination by default 8 Clause Samples

Termination by default 8. 3.1 If the publisher: (a) goes into liquidation, has a receiver or receiver and manager appointed to it or any part of its assets, enters into a scheme of arrangement with creditors or suffers any other form of external administration; (b) fails, within 7 days after receipt of notice, to remedy any breach of its obligations under this agreement which is capable of remedy; (c) breaches any of its obligations under this agreement which is not capable of remedy, or (d) persistently breaches its obligations under this agreement, the Contributor may, by notice to the Publisher, terminate this agreement and recover from the Publisher all damages, losses, costs and expenses suffered by the Contributor. This clause dictates what happens if the Publisher goes bankrupt or breaches the terms of the contract. If this happens, the Contributor can terminate the contract and seek payment from the Publisher for damages, losses, costs and expenses suffered as a result. For this reason keep detailed records of costs and expenses. However, this money may be hard to get back if the Publisher goes bankrupt as the Contributor will become an unsecured creditor. You are a creditor of a company if the company owes you money. Usually, a creditor is owed money because they have provided goods or services, or made loans to the company. A person who may be owed money by the company if a certain event occurs (e.g. if they succeed in a legal claim against the company) is also a creditor, and is sometimes referred to as a ‘contingent’ creditor. An unsecured creditor is a creditor who does not have a charge over the company’s assets – that is you do not have mortgage or something similar over their assets.