Common use of Penalties for delay Clause in Contracts

Penalties for delay. (a) If SELLER, for reasons other than force majeure specified under Article 8, fails to deliver/perform the Works, at the time specified in the Order, fails to perform its warranty obligations on the due date in accordance with Article 6, if the Works are rejected by ASELSAN as per Article 3 or the SELLER fails to fulfill its other obligations within the periods specified in the Order, unless a different rate/amount and/or procedure is specified in the Order, for each day of delay, the SELLER shall pay to ASELSAN a penalty for delay, beginning from the first day of delay of the relevant obligation, at a rate of three per thousand (% 0,3) of the price of the delayed Works, in accordance with the provisions of Article 4.(e). Penalties for delay does not correspond to any damage or loss incurred by ASELSAN, therefore ASELSAN reserves all other rights and remedies provided by law. (b) The payment of the penalties for delay specified hereabove shall not relieve the SELLER of its obligations to complete the delivery/performance of the delayed Works and to fulfill its other obligations under the Order. (c) Expiration of this Order for any reason, including termination, shall not relieve the SELLER of its obligation to pay to ASELSAN any penalties arising from this Order.