Common use of Compensation for Delay Clause in Contracts

Compensation for Delay. If TOMRA does not deliver the goods within fourteen (14) calendar days after the delivery date, TOMRA shall pay the Purchaser compensation for this delay in the amount of 0.2% per completed week of the purchase price specified in the contract for the delayed goods(s). The compensation for delay is to be paid for the period from the date of delivery to the day of the actual delivery of the goods. The total amount due under this Clause shall not exceed five per cent (5%) of the amount indicated in the contract for the delayed product(s). This compensation for delay does not release TOMRA from its obligation to deliver the goods in accordance with the contract. The parties agree that, in view of the impact that the delay in the delivery of the goods will have on the project in question, the damage caused by delay is an exclusive remedy and a genuine, fair and reasonable preliminary estimate of the actual damage that the Purchaser will incur as a result of the delay in the delivery of the goods and does not constitute a contractual penalty.