Discounts for Late Deliveries & Reimbursement of Reprocurement Costs

National Master Standing Offer
EZ107-060001/001/VAN to EZ107-060001/006/VAN
Desktop and Network Printers   including Accessories, Supplies and Services

B.16 Discounts for Late Deliveries & Reimbursement of Reprocurement Costs

(a) If the Contractor fails to deliver any Products by the Delivery Date and Canada does not terminate the Call-up for default and instead provides the Contractor with additional time to make delivery, the Contractor agrees to reduce the price of the Products by 5% of the total value of the Call-up.

(b) If the Contractor is late in delivering only part of the Products ordered on a Call-up, and Canada does not terminate the Call-up for default and instead provides the Contractor with additional time to make balance of the delivery, the Contractor agrees to reduce the price of the Products delivered late by 15%, up to a maximum of 5% of the total value of the Call-up.

(c) These discounts constitute liquidated damages and the Parties agree that these amounts are their best pre-estimate of the loss to Canada in the event of the defaults described, and that they are not a penalty.

(d) If this Contract is terminated by Canada for default, the Contractor must reimburse Canada for any difference in cost between the price of the Products and the cost of procuring the Products from another supplier.

(e) To collect the liquidated damages, Canada has the right to hold back, drawback, deduct or set off from and against any money Canada owes to the Contractor from time to time.

(f) Nothing in this article limits the rights and remedies to which Canada is otherwise entitled under this Contract, the Standing Offer, or the law.