Default Under Any Agreement

Regardless of the occurrence and continuation of a delay event, it is considered that the lender will not initiate any action against the borrower, if no late payment has been found and continues. As a general rule, when a borrower is informed that a delay event has occurred or is likely to occur, it is required to notify the lender immediately and provide relevant information, including the necessary measures to remedy an infringement. It is important for the borrower to ensure that the scope of this provision is sufficiently limited, since a technical breach of an agreement could result in loss of access in other agreements and cause a domino effect with serious consequences. The borrower should ensure that the provision is subject to a de minimis threshold (how much depends on the borrower, the amount of the loan and other agreements). The crossdefault system should also be limited to other borrowing agreements or perhaps a broader category of financial debt, while excluding commercial contracts that could result in late payments or other violations of the normal performance of these contracts. Nor should there be a late payment if the claims in question are challenged in good faith or are limited within the applicable additional time frame, and it should be time to pay the amounts to be repaid upon request. If the contract has no language on termination or default, local laws provide advice. In general, a late payment is reason enough to terminate the contract, but some contracts have additional rules. For example, landlord-tenant agreements generally require a landlord to give a tenant time to pay off the rent before initiating eviction proceedings; A landlord cannot throw a tenant at the door. If you intend to terminate a contract and local laws do not require you to offer a chance to correct the failure, inform the other party in writing that the contract is terminated, and keep specific records that document the standard.