Common use of Contestation Clause in Contracts

Contestation. 9.1. If either Party is informed of the fact that the Debtor contests an Assigned Receivable (the “Disputed Receivable”), this Party shall inform the other Party of this without delay. 9.2. The Factor has the right to immediately reassign any Disputed Receivable to the Client. 9.3. Any Advance Financing granted on the basis of a Disputed Receivable is immediately due as from the moment of contestation. 9.4. Any form of Collection performed with regard to a Disputed Receivable is immediately stopped and all Costs and/or expenses incurred by the Factor for the Collection of a Disputed Receivable are due as from the moment of contestation. 9.5. The Factor has the possibility to waive the right awarded to him in article 9.2 of the present General Terms and Conditions. In this case the Factor shall give the Client the possibility to settle the dispute with regard to the Disputed Receivable amicably within thirty (30) days (the “Dispute Negotiation Period”) after its emergence. The Client will accurately inform the Factor of any possible evolution in and any possible amicable solution for this dispute 9.6. If the Client reaches an amicable solution with the Debtor of the Disputed Receivable during the Dispute Negotiation Period, the Client shall regain its rights to Advance Financing and Collection in accordance with the provisions of the present Agreement.