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"uri": "/contracts/cg3R2pHtLjP#defaulting-party", "label": "Shareholders' Agreement", "score": 35.1363372803, "published": true}, {"hash": "8CWVhNAx5AP", "uri": "/contracts/8CWVhNAx5AP#defaulting-party", "label": "Shareholder Agreement", "score": 32.4586219788, "published": true}], "hash": "993dff998dc6ae6985c11b0362ba467f", "id": 5}, {"size": 228, "snippet": "Access Rights granted to a Defaulting Party and such Party's right to request Access Rights shall cease immediately upon receipt by the Defaulting Party of the formal notice of the decision of the General Assembly to terminate its participation in the consortium.", "snippet_links": [{"key": "access-rights-granted-to", "type": "clause", "offset": [0, 24]}, {"key": "such-party", "type": "clause", "offset": [48, 58]}, {"key": "right-to-request", "type": "clause", "offset": [61, 77]}, {"key": "receipt-by-the", "type": "clause", "offset": [121, 135]}, {"key": "notice-of-the-decision", "type": "clause", "offset": [167, 189]}, {"key": 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The Research Leader or, if the Research Leader is in breach of its obligations, the Party appointed by the Management Board, will give written notice to such Party requiring that such breach will be remedied within 30 (thirty) calendar days from the date of receipt of the written notice by the Party. If such breach is substantial and is not remedied within that period or is not capable of remedy, the Project may decide to declare the Party to be a Defaulting Party and to decide on the consequences thereof, which may include termination of its participation. A Party that is declared a Defaulting Party shall bear all actual and reasonable costs incurred by the other Parties under the Project as a result of the Defaulting Party\u2019s breach of obligations, provided that the reimbursement of such cost towards the other Parties collectively shall be limited to once the Party\u2019s share of the total costs of the Project. Any excess amount shall be apportioned to the remaining Parties pro rata to their share in the total costs of the Project as identified in the Budget. 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In all cases, termination by the Non-Defaulting Party shall not constitute a waiver by the Non-Defaulting Party of any other rights it might have under this Agreement or otherwise against the Defaulting Party.", "snippet_links": [{"key": "termination-of-this-agreement", "type": "clause", "offset": [0, 29]}, {"key": "the-non", "type": "clause", "offset": [33, 40]}, {"key": "waiver-of", "type": "clause", "offset": [81, 90]}, {"key": "other-rights-or-remedies", "type": "clause", "offset": [95, 119]}, {"key": "with-respect-to", "type": "clause", "offset": [120, 135]}, {"key": "obligations-of-the-parties", "type": "clause", "offset": [136, 162]}, {"key": "prior-to", "type": "definition", "offset": [163, 171]}, {"key": "rights-of", "type": "definition", "offset": [192, 201]}, {"key": "expenses-and", "type": "clause", "offset": [253, 265]}, {"key": "monthly-fees", "type": "definition", "offset": [277, 289]}, {"key": "other-obligations", "type": "clause", "offset": [293, 310]}, {"key": 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"related_snippets": [], "updated": "2025-07-26T06:21:18+00:00", "also_ask": ["What are the minimum events that should trigger 'Defaulting Party' status?", "How can the clause be tailored to maximize leverage in negotiations?", "What are the most common pitfalls or ambiguities in defining a 'Defaulting Party'?", "How does this clause compare to industry standards or statutory defaults?", "What factors most influence a court\u2019s willingness to enforce remedies against a Defaulting Party?"], "drafting_tip": "Specify default events precisely to prevent misinterpretation; outline remedies clearly to ensure enforceability; define notice requirements to provide fair opportunity to cure defaults.", "explanation": "The 'Defaulting Party' clause defines which party to a contract is considered to be in default, typically due to failing to fulfill a material obligation or breaching a key term of the agreement. In practice, this clause outlines the specific actions or omissions\u2014such as missed payments, failure to deliver goods, or violation of confidentiality\u2014that would trigger default status. By clearly identifying what constitutes a default and who is responsible, the clause provides a basis for the non-defaulting party to exercise remedies, such as termination or seeking damages, thereby allocating risk and ensuring accountability within the contractual relationship."}, "json": true, "cursor": ""}}