Selected Cases by Article & Issues
(1) In a case of non-performance the aggrieved party may by notice to the other party allow an additional period of time for performance.
(2) During the additional period the aggrieved party may withhold performance of its own reciprocal obligations and may claim damages but may not resort to any other remedy. If it receives notice from the other party that the latter will not perform within that period, or if upon expiry of that period due performance has not been made, the aggrieved party may resort to any of the remedies that may be available under this Chapter.
(3) Where in a case of delay in performance which is not fundamental the aggrieved party has given notice allowing an additional period of time of reasonable length, it may terminate the contract at the end of that period. If the additional period allowed is not of reasonable length it shall be extended to a reasonable length. The aggrieved party may in its notice provide that if the other party fails to perform within the period allowed by the notice the contract shall automatically terminate.
(4) Paragraph (3) does not apply where the obligation which has not been performed is only a minor part of the contractual obligation of the non-performing party.
|1||Aggrieved party fixing additional time for performance||2|
|1.1||Consequence of fixing additional time|
|1.1.1||During additional time aggrieved party entitled to withhold performance and to claim damages but not to resort to other remedies|
|1.1.2||Upon expiration of additional time aggrieved party entitled to resort to any remedy|
|2||Extension of time for performance in case of delay not amounting to fundamental non- performance|
|2.1||Upon expiration of additional time aggrieved party's right to terminate contract|