Late Payment and Default Interest full text

Late Payment and Default Interest

If the Buyer fails to make any payment when due under this Agreement, such unpaid amounts (the „Overdue Amounts”) shall accrue default interest at a rate of 6% per annum. Default interest shall be calculated from the due date of the unpaid amounts until full payment, including any accrued interest, is made. Such default interest shall compound on a monthly basis.

The Buyer acknowledges that the default interest is not a penalty but is intended as a reasonable estimate of the Seller’s damage arising from the Buyer’s failure to make timely payments. The accrual of default interest does not relieve the Buyer of its obligation to pay the Overdue Amounts in full or limit any other remedies available to the Seller under this Agreement or applicable law.

In addition to default interest, the Buyer shall be liable for all reasonable costs, fees, and expenses incurred by the Seller in collecting any overdue payments, including, but not limited to, reasonable attorneys’ fees, court costs, and collection agency fees. Such costs shall be recoverable regardless of whether legal proceedings are initiated.

In the event of partial payment, any amounts paid by the Buyer shall first be applied to cover the accrued default interest, then any collection costs, and finally the principal amount of the Overdue Amounts.