Common use of Contractual Penalty Clause in Contracts

Contractual Penalty. 4.1 If as a result of default the Supplier exceeds one or several of the dates/periods agreed upon with it, the Supplier shall pay to us a contractual penalty at the rate of 0.1% of the net contract price for every business day the date/period is exceeded. The amount of the contractual penalty shall be limited – even in the event that several individual dates/periods have been exceeded – to a maximum of 5% of the net contract price. 4.2 The reservation of the right to impose a contractual penalty may be asserted until final payment is made. Payment of the contractual penalty shall not release the Supplier from its contractual obligations nor from the Supplier being subject to further damages, in particular for default.