Legalese - what does this mean?

T

thabo

Well-known member
I have been asked to add the following to my standard video production contract: "except the default by ---My Production company name--- of the terms of this Agreement". It's in a paragraph about cancellation. The paragraph says that they will owe me 100% of the outstanding balance if they cancel the project. My understanding is that this covers them if I screw up and they have to cancel the project. But how will they define "Default"? It's a pretty big company so I'm not too worried but just trying to understand the legal ramifications.

My luck that the company prez is an ex contracts lawyer :)

Thanks
 
"default" typically means that you're somehow in breach of your contractual obligations. So if you fail to perform the contract as agreed upon, you'll be in default.
 
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