Default Related Provisions and Other Privileges Clause Samples

The "Default Related Provisions and Other Privileges" clause defines the rights and remedies available to a party when the other party fails to fulfill its contractual obligations, known as a default. Typically, this clause outlines the steps that may be taken in the event of default, such as issuing notices, imposing penalties, or accelerating payment obligations, and may also specify additional privileges or protections afforded to the non-defaulting party. Its core practical function is to provide a clear framework for addressing breaches of contract, thereby allocating risk and ensuring that both parties understand the consequences of non-performance.