Default By Management Clause Samples
The "Default By Management" clause defines the consequences and procedures that apply if the management party to an agreement fails to fulfill its contractual obligations. Typically, this clause outlines what constitutes a default, such as missed payments, failure to perform required services, or breaches of key terms, and may specify notice requirements and opportunities to cure the default. Its core function is to protect the non-defaulting party by providing clear remedies and a structured process for addressing management's failure, thereby reducing uncertainty and risk in the contractual relationship.
Default By Management. Default by Management is defined as:
(a) Management files a petition for adjudication as bankrupt, for reorganization, or for an arrangement under any bankruptcy or insolvency law, or if any involuntary petition under any such law is filed against Management and not dismissed within sixty (60) days, or Management shall make any assignment of its property for benefit of creditors;
(b) Management fails to comply with the express terms and conditions of this Agreement, and such failure is not corrected within seven (7) days following receipt of such failure;
(c) With respect to any failure to act or act which is an act of default which cannot reasonably be cured within the time provided by this Agreement and if reasonable efforts to cure such default are commenced within said period of time and are pursued with due diligence to a conclusion, there shall be no right to terminate this Agreement.