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amounting to 2% above the promissory discount rate plus any additional tariffs

English translation: expl.

16:37 Dec 13, 2007
English language (monolingual) [PRO]
Law/Patents - Law: Contract(s)
English term or phrase: amounting to 2% above the promissory discount rate plus any additional tariffs
"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.
jomo
South Korea
Local time: 21:40
Selected answer:expl.
Explanation:
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%...
Selected response from:

BusterK
Local time: 14:40
Grading comment
Thank you very much.
4 KudoZ points were awarded for this answer



SUMMARY OF ALL EXPLANATIONS PROVIDED
4Refers to compensation for Contractor's loss of interest
conejo
3expl.
BusterK


Discussion entries: 2





  

Answers


11 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5
meaning of one phrase
expl.


Explanation:
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%...


BusterK
Local time: 14:40
Native speaker of: Native in FrenchFrench
PRO pts in category: 12
Grading comment
Thank you very much.
Login to enter a peer comment (or grade)

1 hr   confidence: Answerer confidence 4/5Answerer confidence 4/5
Refers to compensation for Contractor's loss of interest


Explanation:
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!

conejo
United States
Local time: 07:40
Specializes in field
Native speaker of: English
PRO pts in category: 4
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