Common use of Penalty Clauses Clause in Contracts

Penalty Clauses. Should the Seller fail to observe the time limit laid down for the delivery of the Goods according to paragraph III(1) of this Contract, it is under obligation to pay the Buyer a contractual penalty of 0.1 % of the total purchase price not including VAT for each commenced day of delay. Should the Seller fail to observe the time limits laid down for commencement of the removal of a defect according to paragraph VI(3) of this Contract, it is under obligation to pay the Buyer a contractual penalty of CZK 500,- for each defect and each commenced day of delay. Should the Seller fail to observe the time limits laid down for commencement of the removal of a defect according to paragraph VI(4) of this Contract, it is under obligation to pay the Buyer a contractual penalty of CZK 1.000,- for each defect and each commenced day of delay. Should the Seller fail to observe the time limit laid down for the delivery of new Goods according to subparagraph VI(6)(a) of this Contract, the time limit for coverage of the costs of removing a defect according to paragraph VI(5) of this Contract, or the time limit for payment of an amount corresponding to a discount on the purchase price according to paragraph VI(7) of this Contract, it is under obligation to pay the Buyer a contractual penalty of CZK 1.000,- for each identified case and each commenced day of delay. Where the Buyer is in delay with payment of the purchase price, the Buyer undertakes to pay the Seller interest on late payment on the unpaid portion of the purchase price including VAT in an amount arising from generally-binding legal regulations. The obliged Contracting Party pays a contractual penalty into the account of the entitled Contracting Party, as specified in the header to this Contract, on the basis of notice of imposing a contractual penalty issued by the entitled Contracting Party and delivered to the obliged Contracting Party. Such notice shall contain a description of and the time designation of the incident which establishes the right to payment of a contractual penalty in accordance with the Contract. The obliged Party must make a statement on the billing of a penalty within a maximum of 10 days after receiving this; otherwise it is deemed that the obliged Party agrees with such billing. A statement in this case is understood to be the written opinion of the obliged Party. Where the obliged Party does not agree with the billing of a penalty, it is under obligation to inform the entitled Party of the reasons for which it does not accept the penalty, and to do so within the arranged time limit. The payment term of billed contractual penalties is 30 days following the date of delivery to the relevant Contracting Party of written notice of the imposition of a contractual penalty, and the date of payment is deemed to be the date on which the amount of the contractual penalty is debited from the account of the relevant Contracting Party for the benefit of the account which is specified in the billing of the contractual penalty. The arrangements on contractual penalties shall be without prejudice to the rights of the injured party to compensation for loss or damage, which may be enforced separately in full in addition to a contractual penalty. The Buyer is authorised to offset a contractual penalty against a claim of the Seller for payment of the purchase price.

Penalty Clauses. Should the Seller fail to observe the time limit laid down for the delivery of the Goods according to paragraph III(1) of this Contract, it is under obligation to pay the Buyer a contractual penalty of 0.1 % of the total purchase price not including VAT for each commenced day of delay. Should the Seller fail to observe the time limits laid down for commencement of the removal of a defect according to paragraph VI(3) of this Contract, it is under obligation to pay the Buyer a contractual penalty of CZK 500,- for each defect and each commenced day of delay. Should the Seller fail to observe the time limits laid down for commencement of the removal of a defect according to paragraph VI(4) of this Contract, it is under obligation to pay the Buyer a contractual penalty of CZK 1.000,- for each defect and each commenced day of delay. Should the Seller fail to observe the time limit laid down for the delivery of new Goods according to subparagraph VI(6)(a) of this Contract, the time limit for coverage of the costs of removing a defect according to paragraph VI(5VI(5)(a) of this Contract, or the time limit for payment of an amount corresponding to a discount on the purchase price according to paragraph VI(7VI(6) of this Contract, it is under obligation to pay the Buyer a contractual penalty of CZK 1.000,- for each identified case and each commenced day of delay. Where the Buyer is in delay with payment of the purchase price, the Buyer undertakes to pay the Seller interest on late payment on the unpaid portion of the purchase price including VAT in an amount arising from generally-binding legal regulations. The maximum amount of contractual penalties pursuant to paragraphs 1 - 4 of this article of the contract is limited to 10% of the total purchase price excluding VAT pursuant to paragraph IV(1) of this Contract, regardless of the number of breaches of contractual obligations or the length of the delay. The obliged Contracting Party pays a contractual penalty into the account of the entitled Contracting Party, as specified in the header to this Contract, on the basis of notice of imposing a contractual penalty issued by the entitled Contracting Party and delivered to the obliged Contracting Party. Such notice shall contain a description of and the time designation of the incident which establishes the right to payment of a contractual penalty in accordance with the Contract. The obliged Party must make a statement on the billing of a penalty within a maximum of 10 days after receiving this; otherwise it is deemed that the obliged Party agrees with such billing. A statement in this case is understood to be the written opinion of the obliged Party. Where the obliged Party does not agree with the billing of a penalty, it is under obligation to inform the entitled Party of the reasons for which it does not accept the penalty, and to do so within the arranged time limit. The payment term of billed contractual penalties is 30 days following the date of delivery to the relevant Contracting Party of written notice of the imposition of a contractual penalty, and the date of payment is deemed to be the date on which the amount of the contractual penalty is debited from the account of the relevant Contracting Party for the benefit of the account which is specified in the billing of the contractual penalty. The arrangements on contractual penalties shall be without prejudice to the rights of the injured party to compensation for loss or damage, which may be enforced separately in full in addition to a contractual penalty. Liability for damages and compensation for damages is limited by this Contract to the amount of the purchase price excluding VAT pursuant to paragraph IV(1) of this Contract. The Buyer is authorised to offset a contractual penalty against a claim of the Seller for payment of the purchase price.