Event of Default definition: Copy, Customize, and Use Instantly
Introduction
The term "Event of Default" refers to a situation in which one party to a contract fails to meet the obligations or terms specified in the agreement. It is crucial for defining when a breach occurs and what consequences follow, ensuring that parties have a clear understanding of when the contract can be terminated or when remedies can be sought.
Below are various examples of how "[Event of Default]" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Event of Default" as Payment Default
This definition ties "Event of Default" to a failure to make required payments.
"Event of Default" means the failure of a party to make any payment due under the contract within [X] days after the payment is due, after written notice from the other party, and failure to cure such default within [X] days.
Definition of "Event of Default" as Breach of Obligations
This definition connects "Event of Default" to a breach of contractual obligations.
"Event of Default" refers to the failure of a party to perform any of its material obligations under the contract, including non-compliance with the terms or conditions set forth, and such failure remains uncured for [X] days following notice of the breach.
Definition of "Event of Default" as Insolvency
This definition links "Event of Default" to the insolvency or financial incapacity of a party.
"Event of Default" means the occurrence of insolvency, bankruptcy, liquidation, or similar proceedings involving a party, or the appointment of a receiver, administrator, or trustee for the party’s assets, making it impossible or unlikely for that party to fulfill its obligations under the contract.
Definition of "Event of Default" as Failure to Deliver
This definition applies "Event of Default" to failure to deliver goods, services, or other contractual promises.
"Event of Default" refers to the failure to deliver the goods or services as required under the terms of the agreement, with such failure not being cured within [X] days after written notice from the non-breaching party.
Definition of "Event of Default" as Non-Performance
This definition ties "Event of Default" to non-performance of key contract terms.
"Event of Default" means the failure of a party to perform any material obligation specified under the agreement, including non-delivery or non-execution of services, after a reasonable cure period of [X] days following written notice of the failure.
Definition of "Event of Default" as Change of Control
This definition connects "Event of Default" to changes in the control of a party to the agreement.
"Event of Default" refers to any change in the control of a party, such as the sale of the company, merger, or acquisition, that may materially affect the party's ability to meet its obligations under this agreement, unless consented to by the other party in writing.
Definition of "Event of Default" as Misrepresentation
This definition links "Event of Default" to fraudulent misrepresentation or false statements.
"Event of Default" means the occurrence of any false statement or material misrepresentation made by a party in relation to the terms of the contract, or any failure to disclose critical information that affects the contract’s execution, which is not remedied within [X] days of notice.
Definition of "Event of Default" as Failure to Maintain Insurance
This definition applies "Event of Default" to failure to maintain required insurance coverage.
"Event of Default" refers to a party’s failure to maintain insurance coverage as required under the terms of the contract, which remains uncured within [X] days of written notice by the other party.
Definition of "Event of Default" as Unlawful Acts
This definition ties "Event of Default" to engaging in unlawful or illegal activities.
"Event of Default" means the involvement of a party in any unlawful act or the violation of any applicable law or regulation that materially affects the performance of the agreement, and such act is not remedied within [X] days after written notice.
Definition of "Event of Default" as Failure to Provide Security
This definition connects "Event of Default" to a failure to provide agreed-upon security or collateral.
"Event of Default" refers to the failure of the party to provide or maintain any required security, collateral, or performance bond under the agreement, which is not rectified within [X] days of notice.
Definition of "Event of Default" as Non-Compliance with Regulatory Requirements
This definition applies "Event of Default" to the non-compliance with legal or regulatory requirements.
"Event of Default" means the failure of a party to comply with any applicable regulatory requirements or laws, including failure to obtain required permits or licenses, and such non-compliance is not rectified within [X] days of notice.
Definition of "Event of Default" as Unauthorized Assignment
This definition connects "Event of Default" to the unauthorized transfer of rights or obligations.
"Event of Default" means the assignment, transfer, or delegation of any rights or obligations under this agreement to a third party without the prior written consent of the other party, and such action is not rectified within [X] days of written notice.
Definition of "Event of Default" as Failure to Meet Financial Covenants
This definition ties "Event of Default" to the breach of financial covenants in a financial agreement.
"Event of Default" refers to the failure of a party to maintain the financial ratios or performance metrics specified in the agreement, such as debt-to-equity ratio or minimum liquidity requirements, for [X] consecutive reporting periods.
Definition of "Event of Default" as Unauthorized Use of Intellectual Property
This definition applies "Event of Default" to breaches related to intellectual property rights.
"Event of Default" means the unauthorized use, reproduction, or distribution of intellectual property, trademarks, patents, or proprietary information belonging to the other party, and such violation is not remedied within [X] days following notice.
Definition of "Event of Default" as Delayed Performance
This definition connects "Event of Default" to delays in performance beyond the agreed-upon timeline.
"Event of Default" refers to the failure of a party to complete a task, service, or delivery within the timeline specified in the agreement, and such delay exceeds [X] days after the agreed deadline.
Definition of "Event of Default" as Inability to Fulfill Representations
This definition links "Event of Default" to the inability of a party to uphold representations or warranties made in the agreement.
"Event of Default" means the failure of a party to uphold any material representation or warranty made in the contract, including the ability to fulfill obligations due to factors such as capacity, resources, or expertise, which is not remedied within [X] days after notice.
Definition of "Event of Default" as Breach of Confidentiality
This definition applies "Event of Default" to breaches of confidentiality clauses.
"Event of Default" refers to any breach of the confidentiality obligations set forth in the agreement, including unauthorized disclosure of confidential information, and the failure to rectify such breach within [X] days of written notice.
Definition of "Event of Default" as Force Majeure Failure to Remedy
This definition connects "Event of Default" to the failure of a party to overcome a force majeure event.
"Event of Default" means the failure of a party to resume performance after the occurrence of a force majeure event (e.g., natural disaster, war, strike), and such failure persists for more than [X] days after the event ends or the force majeure condition no longer applies.
Definition of "Event of Default" as Non-Cooperation with Audit
This definition ties "Event of Default" to non-cooperation in an audit or inspection process.
"Event of Default" refers to the failure of a party to provide necessary documents, access, or assistance for the completion of an audit, inspection, or review as required by the agreement, and such non-compliance is not remedied within [X] days following notice.
Definition of "Event of Default" as Adverse Legal Judgment
This definition links "Event of Default" to adverse legal judgments or court orders.
"Event of Default" means the issuance of an adverse legal judgment, court order, or regulatory penalty against a party that materially affects its ability to perform under the agreement, and such judgment or order is not appealed or vacated within [X] days.
Definition of "Event of Default" as Material Adverse Change
This definition links "Event of Default" to significant negative changes affecting a party's ability to perform.
"Event of Default" means the occurrence of a material adverse change that negatively impacts the financial condition, business operations, or prospects of a party, making it impossible or unlikely to perform under the terms of this agreement.
Definition of "Event of Default" as Loss of Key Personnel
This definition ties "Event of Default" to the loss of essential personnel necessary to fulfill the contract.
"Event of Default" refers to the departure or inability of any key personnel designated in the agreement to perform their duties, and the failure to replace such personnel within [X] days of their departure, resulting in an inability to meet contractual obligations.
Definition of "Event of Default" as Breach of Data Protection
This definition applies "Event of Default" to violations related to data protection laws and regulations.
"Event of Default" means any failure to comply with applicable data protection laws, including unauthorized access to or disclosure of personal data, and such failure is not rectified within [X] days after notice from the other party.
Definition of "Event of Default" as Failure to Maintain Compliance
This definition connects "Event of Default" to failure to maintain regulatory or legal compliance.
"Event of Default" means the failure of a party to maintain compliance with any regulatory, legal, or industry-specific requirement essential to performing under the agreement, and such failure remains uncured for [X] days after written notice from the non-defaulting party.
Definition of "Event of Default" as Non-Approval or Revocation of License
This definition ties "Event of Default" to the failure to maintain necessary licenses or approvals.
"Event of Default" refers to the revocation, suspension, or failure to obtain any required license, permit, or regulatory approval needed to perform under the agreement, and such failure is not remedied within [X] days after notice.
Definition of "Event of Default" as Criminal Conviction
This definition links "Event of Default" to a criminal conviction affecting performance.
"Event of Default" means a criminal conviction of a party, principal, or any of its key personnel that adversely affects the party’s ability to perform under the contract, and such conviction is not appealed or reversed within [X] days.
Definition of "Event of Default" as Unresolved Dispute
This definition applies "Event of Default" to the failure to resolve an unresolved dispute.
"Event of Default" refers to an unresolved dispute between the parties that prevents or materially delays the performance of obligations under the contract, and such dispute remains unresolved for [X] days despite efforts to negotiate or mediate.
Definition of "Event of Default" as Unpaid Judgments
This definition connects "Event of Default" to unpaid or outstanding judgments against a party.
"Event of Default" means the failure to pay any judgment, debt, or financial obligation owed by a party, which remains unpaid for more than [X] days after it becomes due, and such failure impedes the party’s ability to perform its obligations under the agreement.
Definition of "Event of Default" as Failure to Meet Delivery Milestones
This definition links "Event of Default" to missed project milestones or deadlines.
"Event of Default" refers to the failure of a party to meet key delivery milestones or deadlines outlined in the agreement, and the delay exceeds [X] days without a valid reason or extension granted by the other party.
Definition of "Event of Default" as Environmental Violation
This definition ties "Event of Default" to violations of environmental laws or regulations.
"Event of Default" means any violation of environmental laws, regulations, or standards by a party, including failure to maintain required environmental permits, and the failure to remedy such violation within [X] days after notice.
Definition of "Event of Default" as Unauthorized Disclosure of Trade Secrets
This definition ties "Event of Default" to breaches involving confidential business information.
"Event of Default" refers to the unauthorized disclosure or use of trade secrets, proprietary information, or confidential business data by a party, and such disclosure is not remedied within [X] days after notice from the other party.
Definition of "Event of Default" as Failure to Maintain Property
This definition connects "Event of Default" to the failure to maintain or protect physical assets.
"Event of Default" means the failure of a party to maintain or protect property, equipment, or other assets necessary for fulfilling the obligations under the contract, and such failure continues for [X] days after notice is given.
Definition of "Event of Default" as Violation of Contractual Timeframe
This definition links "Event of Default" to delays in performance that breach contractual timeframes.
"Event of Default" refers to the failure of a party to meet a deadline or complete a task within the agreed-upon timeframe as specified in the contract, and such delay is not remedied within [X] days of notice.
Definition of "Event of Default" as Failure to Meet Quality Standards
This definition ties "Event of Default" to non-compliance with quality control or performance standards.
"Event of Default" means the failure to meet the quality standards or specifications required under the contract, and such failure is not rectified within [X] days of notice from the other party.
Definition of "Event of Default" as Non-Approval of Work Product
This definition applies "Event of Default" to failure to gain approval for work, goods, or services.
"Event of Default" refers to the rejection or failure to approve any goods, services, or deliverables provided under the agreement by the other party, and such non-approval is not addressed within [X] days after written notice.
Definition of "Event of Default" as Disruption in Supply Chain
This definition links "Event of Default" to disruptions in the supply chain that affect performance.
"Event of Default" means the occurrence of a disruption in the supply chain or the inability to procure materials, goods, or services essential for fulfilling the obligations under the agreement, and such disruption continues for [X] days without an alternative solution.
Definition of "Event of Default" as Failure to Maintain Licenses or Certifications
This definition ties "Event of Default" to the loss of necessary professional licenses or certifications.
"Event of Default" refers to the failure of a party to maintain any licenses, certifications, or permits required by law to perform the contractual duties, and such failure is not cured within [X] days after notice from the other party.
Definition of "Event of Default" as Default in Debt Obligations
This definition applies "Event of Default" to defaults in debt repayment or other financial obligations.
"Event of Default" means the default or failure to make timely payments on any debt obligations or loans secured by a party, and such default remains uncured for [X] days after notice is given.
Definition of "Event of Default" as Breach of Warranties or Representations
This definition connects "Event of Default" to the breach of contractual warranties or representations.
"Event of Default" means the failure of a party to uphold any warranties or representations made in the agreement, including but not limited to the accuracy of financial or operational claims, and such breach is not corrected within [X] days of notice.
Definition of "Event of Default" as Overdue Penalties
This definition ties "Event of Default" to the failure to pay overdue penalties or fines.
"Event of Default" refers to the failure to pay any penalties, fines, or charges imposed under the contract, and such failure continues for [X] days after the payment is due.
Definition of "Event of Default" as Failure to Pay Subcontractors
This definition links "Event of Default" to the non-payment of subcontractors or third-party vendors.
"Event of Default" means the failure of a party to pay any subcontractors, suppliers, or third parties within the agreed payment terms, and such non-payment is not cured within [X] days after notice from the affected party.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.