Dec 13, 2007 16:37
16 yrs ago
1 viewer *
English term
amounting to 2% above the promissory discount rate plus any additional tariffs
English
Law/Patents
Law: Contract(s)
"Should payments not have been made at the agreed times, Principal will owe compensation for loss of interest, without prejudice to his payment obligation, in any event for the unpaid amount from the due date, amounting to 2% above the promissory discount rate plus any additional tariffs, with a minimum rate of interest based on 12% per year, calculated over the total amount of invoices as yet unpaid, which compensation will be payable without notice of default, without prejudice to the rights granted to Contractor to lodge other claims under the Law or pursuant to these General Conditions"
Could any of you to explain what the phrase " amounting to 2% above the promissory discount rate plus any additional tariffs," is related with and what it means.
Your assistance will be greatly appreciated.
Could any of you to explain what the phrase " amounting to 2% above the promissory discount rate plus any additional tariffs," is related with and what it means.
Your assistance will be greatly appreciated.
Change log
Dec 13, 2007 17:45: NancyLynn changed "Term asked" from "Meaning of one phrase" to "amounting to 2% above the promissory discount rate plus any additional tariffs"
Responses
11 mins
English term (edited):
meaning of one phrase
Selected
expl.
it is the compensation for loss of interest, i.e. interest on the amount paid late (the principal).
This compensation is X% of the principal with X = promissory discount rate + other tarriffs (don't know what it may be) +2% with a minimum of 12%...
This compensation is X% of the principal with X = promissory discount rate + other tarriffs (don't know what it may be) +2% with a minimum of 12%...
4 KudoZ points awarded for this answer.
Comment: "Thank you very much."
1 hr
Refers to compensation for Contractor's loss of interest
OK: Buster's explanation seemed really confusing to me, so I will try to answer this.
Here is what happens in this hypothetical scenario.
1. If Principal does not pay Contractor at the agreed time,
2. As a result, Contractor will lose interest money.
3. Principal must still pay the amount Principal is required to pay (the past due amount), and also must pay Contractor separate compensation for Contractor's lost interest money.
4. "amounting to 2% above the promissory discount rate plus any additional tariffs" refers to the compensation for Contractor's lost interest money.
5. The calculation method for this compensation is:
(Promissory discount rate + 2%) + additional tariffs (if they exist).
The minimum rate of interest for the above calculation is based on 12% per year, calculated from the total amount of invoices that haven't been paid yet.
I hope this helps!
Here is what happens in this hypothetical scenario.
1. If Principal does not pay Contractor at the agreed time,
2. As a result, Contractor will lose interest money.
3. Principal must still pay the amount Principal is required to pay (the past due amount), and also must pay Contractor separate compensation for Contractor's lost interest money.
4. "amounting to 2% above the promissory discount rate plus any additional tariffs" refers to the compensation for Contractor's lost interest money.
5. The calculation method for this compensation is:
(Promissory discount rate + 2%) + additional tariffs (if they exist).
The minimum rate of interest for the above calculation is based on 12% per year, calculated from the total amount of invoices that haven't been paid yet.
I hope this helps!
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