Common use of Default Charge Clause in Contracts

Default Charge. Company must pay the Default Charge for each unit of Product distributed in violation of the terms of this Agreement. If Company cannot account for Product, those missing Products will be deemed to have been distributed in violation of this Agreement. The parties agree that the unauthorized distribution of Product would result in damages to MS that are impractical and difficult to ascertain. The parties also agree that the Default Charge is a reasonable and genuine estimate of the loss to MS. Payment of the Default Charge shall constitute MS’ sole and exclusive compensatory remedy in case of unauthorized distribution of Product, provided, that this does not limit MS’ ability to seek equitable relief in case of unauthorized distribution of same.

Default Charge. Company must pay the Default Charge for each unit of Licensed Product distributed in violation of the terms of this Agreement. If Company cannot account for Licensed Product, those missing Licensed Products will be deemed to have been distributed in violation of this Agreement. The parties agree that the unauthorized distribution of Licensed Product would result in damages to MS that are impractical and difficult to ascertain. The parties also agree that the Default Charge is a reasonable and genuine estimate of the loss to MS. Payment of the Default Charge shall constitute MS’ sole and exclusive compensatory remedy in case of unauthorized distribution of Licensed Product, provided, that this does not limit MS’ ability to seek equitable relief in case of unauthorized distribution of same.