Common use of Termination for cause Clause in Contracts

Termination for cause. The contract may be terminated by either party at any time in writing with immediate effect for reasonable cause. Without limitation, the Supplier shall be entitled to terminate the Contract for reasonable cause, if: i. the Customer, despite a notice with an announcement of an extended deadline of 14 days, is in default of payment; ii. the Customer and/or User, at the time entering to the Contract, provides the Supplier with untrue statements regarding his or her person or his or her economic status, upon whose prior ascertainment the Supplier would not have entered into the Contract; iii. in case of a fraudulent or excessive use or a breach of Section 4. by the Customer or User or if he or she tolerates such use of any third party; iv. if provision of surety is not made by the Customer within appropriate time of a request to do so; v. in the event of reasonable doubt in Customers solvency or credit standing; vi. if insolvency proceedings have been instituted on the Customer’s assets, or if an application for the initiation of insolvency proceedings is rejected for lack cost-covering assets, the Supplier shall be entitled to withdraw from the Contract without allowing a period of grace. If this right of rescission has been exercised, it comes into effect immediately after the decision that the business won’t be continued. If the business is being continued, the rescission comes into effect 6 month after such insolvency proceeding has been stated or after the rejection of the application for the initiation of insolvency proceedings due to lack of funds. Nevertheless, the termination of the Contract shall be with immediate effect to the extent that it is not contrary to compulsory domestic insolvency law which applies on the Customer or if the immediate termination of the Contract is necessary to avert material disadvantages for the Supplier.