Allowable Delay Clause Samples
The Allowable Delay clause defines the circumstances under which a party is permitted to extend deadlines or delay performance without penalty. Typically, this clause outlines specific events—such as force majeure, supply chain disruptions, or regulatory changes—that justify a delay, and may require the affected party to provide timely notice and supporting documentation. Its core function is to allocate risk and provide flexibility, ensuring that unforeseen events do not automatically result in breach of contract or liability for delays.
Allowable Delay. Notwithstanding anything to the contrary contained herein, as to the Registration Statement required to be filed pursuant to Section 5.2, for not more than an aggregate of 30 Trading Days (which need not be consecutive) during the Effectiveness Period of the Registration Statement, the Company may delay the disclosure of material non-public information concerning the Company, by suspending the use of any Prospectus included in the Registration Statement containing such material non-public information, the disclosure of which at the time is not, in the good faith opinion of the Company, in the best interests of the Company (an “Allowed Delay”); provided, that the Company shall promptly (a) notify the Holders in writing of the existence of (but in no event, without the prior written consent of a Holder, shall the Company disclose to such Holder any of the facts or circumstances regarding) such material non-public information giving rise to an Allowed Delay, (b) advise the Holders in writing to cease all sales under the Registration Statement until the end of the Allowed Delay and (c) use commercially reasonable efforts to terminate an Allowed Delay as promptly as practicable.
Allowable Delay. The following shall be considered allowable delays:
(1) Late payment or nonpayment of construction costs by Developer or Developer’s client/home buyer (the “Owner”).
(2) Neglect or default by their agents, the Developer, Developer’s agent, lender, any other FLI or independent material suppliers.
Allowable Delay