Common use of Default by the Contractor Clause in Contracts

Default by the Contractor. If there occurs in respect of the Contractor an event of default (howsoever described) of the relevant provisions of the PFD Agreements or an event of insolvency, or where the principal obligations under the PFD Agreements are voidable, this Deed shall take effect as if the Guarantor was ab initio the principal obligor and not merely a surety.