Common use of Damage Liability and Settlement Clause in Contracts

Damage Liability and Settlement. a) Damage settlement is governed by the provisions of Sections 2894 and the following Sections of the Civil Code, The Business Terms and arrangements between the Parties hereunder. b) The Parties hereby undertake to notify each other about any and all events that they believe may cause damage, and to make every effort to avert potential damage. c) Both the Market Operator and the Balance Responsible Party are entitled to claim settlement of damage inflicted on it as a result of the other Party’s breach of obligations, even in the event the said breach of obligations is subject to contractual penalty. The harmed Party may claim damage settlement in excess of the contractual penalty. d) Pursuant to Section 25 (3), letter c) and letter d), and Section 24 (3), letter c) and letter d) of Energy Act, a circumstance voiding liability is not deemed an event whereby imbalance of the Balance Responsible Party has resulted from curtailment or interruption of electricity supply by the distribution or transmission system operator.