Common use of Delay Penalty Clause in Contracts

Delay Penalty. 11.1. If it is apparent to the contracting party that it will be in default with the delivery or that the delivery will not be of the agreed quality, it has to inform B&B without undue delay. In such case, B&B is entitled to insist on delivery or to withdraw from the contract. Such notification does not result in exemption from the contractual penalty pursuant to the provision below. Acceptance of the delayed delivery/service does not constitute a waiver of any claims whatsoever, in particular compensation claims. 11.2. In the event of delay, the supplier has to pay a contractual penalty of 0.5% of the total order value for each week of delay or part thereof, irrespective of fault, unless another penalty has been agreed. The deadline for the penalty is 12:00 noon on the day following the agreed delivery date. B&B is furthermore free to withdraw from the order without granting a grace period, without incurring any costs. The right to claim compensation for any further damages remains unaffected.

Delay Penalty. ‌ 11.1. If it is apparent to the contracting party that it will be in default with the delivery or that the delivery will not be of the agreed quality, it has to inform B&B without undue delay. In such case, B&B is entitled to insist on delivery or to withdraw from the contract. Such notification does not result in exemption from the contractual penalty pursuant to the provision below. Acceptance of the delayed delivery/service does not constitute a waiver of any claims whatsoever, in particular compensation claims. 11.2. In the event of delay, the supplier has to pay a contractual penalty of 0.5% of the total order value for each week of delay or part thereof, irrespective of fault, unless another penalty has been agreed. The deadline for the penalty is 12:00 noon on the day following the agreed delivery date. B&B is furthermore free to withdraw from the order without granting a grace period, without incurring any costs. The right to claim compensation for any further damages remains unaffected.