Common use of Contract Default Clause in Contracts

Contract Default. 7-1 Parties hereto shall perform all the stipulations herein with greatest care, excluding force majeure (e.g. war, natural disaster, change of directory policy). 7-2 Party B shall notify Party A thirty (30) days in advance if Party B need to terminate the agreement for some reason. Otherwise, Party B shall compensate Party A with twice the amount of monthly rental. 7-3 If Party A fails to inform Party B that the Plant is collateralized or flawed in property transfer, thus causing the loss from Party B, Party A shall be obligated for the damages. 7-4 In case that Party B alters the construction structure of Plant thus violating the technical rules or fire safety regulations — including power line modification, change of technical processes or alternation of productive facilities — at its discretion and without Party A's written consent or exceeding the scope wherein Party A agrees in written form, Party A shall have the right of requesting Party B to restore the Plant and Facilities and to cover the damages incurred. 7-5 If any defect exists in the Plant or Facilities when delivered, Party A shall make repair within three (3) days upon the delivery date. If Party A fails to repair in due time, Party A agrees to reduce rentals and change rental-related terms and conditions herein accordingly. 7-6 If Party B has any safety-related incidence during operation because of Plant and Facilities per se, Party A shall be liable for all the losses incurred and shall reduce the rental fees accordingly until the Plant or Facilities can be operated normally.