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PES Contract Clauses > Default and Remedies Example 3

15. DEFAULT AND REMEDIES

An "Event of Default," as that term is defined in the Program Guidelines, is a serious breach of a party's obligations under this agreement.

Therefore, if an Event of Default occurs, the non-defaulting party may immediately terminate this agreement and the defaulting party shall pay monetary penalties as provided in the Program Guidelines. If the agreement is terminated due to an Event of Default on the part of the Participant, the Participant will be ineligible to participate in the Program in the future.

Notes

This merged default and remedies clause does not define default, but refers to a detailed definition in the program guidelines.

Context of this Clause

• Participation agreement for a national REDD+ program
• Ecosystem service: forest carbon emissions reduction credits or conservation/restoration services expected to yield forest carbon emissions reduction or removal
• Single seller signing a government-provided form contract (which is backed up by detailed program guidelines) with a representative of the government ministry that administers the REDD+ program
• Source: Lessons Learned for REDD+ from PES and Conservation Incentive Programs, Examples from Costa Rica, Mexico, and Ecuador

About: Default and Remedies

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