The "No Default" clause ensures that a party declares there are no existing breaches or violations of any agreements or obligations at the time of entering into the new contract. It provides assurance to the other party that all previous commitments have been met and no circumstances exist that could impede the performance of the contract.
The Company has requested that the Holders agree and acknowledge (consistent with prior discussions) that no Default or Event of Default has arisen under the Agreement solely as a result of or in connection with the late interest payment (the “Interest Payment”) and, to the extent that the Interest Payment was a Default or Event of Default, the Company has requested that the Holders agree to waive any Default and Event of Default arising from the Interest Payment.
No Default. No Default or Event of Default has occurred and is continuing.
No Default or Event of Default has occurred and is continuing at the time of or immediately after giving effect to this Amendment.
No Default or Event of Default shall have occurred and be continuing at the time of or immediately after giving effect to this Amendment and the transactions contemplated hereby (and by delivering its signature page to this Amendment, the Borrower certifies that this condition is satisfied).
No Default. Tenant represents, warrants and covenants that, to the best of Tenant’s knowledge, Landlord and Tenant are not in default of any of their respective obligations under the Existing Lease and no event has occurred that, with the passage of time or the giving of notice (or both) would constitute a default by either Landlord or Tenant thereunder.
Acknowledgment of No Default: The Note Holder hereby acknowledges and confirms that, as of the date of this Amendment, there is no default, and there has been no default in the past, under the Agreement by the Company, and the Company is in full compliance with all terms and conditions of the Agreement.
No Default. No Default or Event of Default shall have occurred and be continuing or would immediately arise as a result of the transactions contemplated by this Amendment.
“No Default” is a clause typically found in financial and business contracts, indicating that neither party is currently in breach of the agreed terms. This clause assures all involved parties that there has been no occurrence of a default event, which could potentially trigger a series of consequences such as penalties, suspension, or termination of the contract.
Including a “No Default” clause is crucial in situations where the financial or operational health of a party is essential for the ongoing viability of a contractual agreement. You should consider using a “No Default” clause when:
To draft a “No Default” clause, ensure it clearly articulates the expectations and obligations of the involved parties concerning defaults. A typical “No Default” clause might look like this:
As of the date of this agreement, and throughout its term, each party represents and warrants that there exists no occurrence or condition that constitutes, or that with the passage of time or the giving of notice would constitute, a default under this agreement or result in any material adverse effect on the financial condition or operations of the party.
Ensure the language is precise and check it against the overall context of the contract to avoid ambiguities.
The “No Default” clause is commonly found in the following types of contracts:
In any of these contexts, the “No Default” clause serves as a safeguard, protecting the integrity of the agreement and providing reassurance to all contractual parties.
Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
The "No Employment Commitment" clause clarifies that neither party intends to create a formal employment relationship through their agreement. It specifies that the agreement does not guarantee employment, permanent or otherwise, for either party involved.
The "No Exclusivity" clause ensures that the parties involved are not restricted from engaging in similar relationships or contracts with other entities. This clause allows each party to pursue additional opportunities without breaching the terms of the current agreement.
The "No Hire" clause is a contractual provision that restricts one party from hiring employees of another party for a specified period during or after the term of the agreement. This clause is intended to protect businesses from losing key personnel to partners or competitors and to maintain a stable workforce.
Try our AI contract analysis and extract important clauses and information from existing contracts.
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