Page 100 - The Persian Gulf Historical Summaries (1907-1953) Vol III_Neat
P. 100
96
Article 43
If, in the opinion of cither party hereto, any default in the performance of
any obligation hereunder shall occur on the part of the other party hereto, such
party may give to the other party written notice that such other party is in default
in its obligations hereunder, specifying the respects in which a default is claimed
to exist, and, unless the party receiving such notice shall, within thirty (30) days
after the receipt thereof, notify the other party in writing that a dispute exists,
within the meaning of Article 45 hereof, and call for a determination of such
dispute as provided in said Article 45 hereof, the party claimed to be in default
shall be deemed to have committed such default and shall remedy such default
and notify the other party in writing as to the action taken by it within ninety (90)
days after receipt of such notice of the existence of such default.
If the defaulting party shall be the Company, and the Company shall not have
remedied such default as hereinabove provided or, if a dispute shall have existed
in respect of whether or not such default has occurred or has been remedied, and
the Company shall not have taken such action with respect thereto as may be
directed by the decision of the Board of Arbitration within the time prescribed
by such decision, as hereinafter provided in Article 45 hereof, the Government
may at its election, notify the Company in writing that all of its rights hereunder
have been terminated, and upon receipt of such notice by the Company, all such
rights shall be deemed to be completely and entirely terminated and the Company
shall have no further rights or interest hereunder, or in any property, movable
or immovable, in said Neutral Zone or in Saudi Arabia and shall be deemed to
have forfeited any and all payments theretofore made by it hereunder. If the
default shall consist of the failure to make any payment hereunder, the Company
shall remain liable for all payments called for by this agreement until it has made
the payment in respect of which such default occurred.
Article 44
Failure on the part of either party to this agreement to perform any of the
obligations on its part to be performed hereunder shall not be deemed to constitute
a default in so far as such failure arises from the failure of the other party to
perform an obligation or obligations on its part to be performed hereunder or
from force majeure, and to the extent that such performance by either party shall
have been delayed by any such failure of the other party so to perform or by
force majeure, the period of such delay shall be added to the period fixed by
this agreement for such performance by the party whose performance has been
so delayed. Force majeure is hereby defined to include act of God, war,
insurrection, riot, civil commotion, strike, tide, storm, tidal wave, flood, lightning,
explosion, fire, earthquake, interruption of facilities for transportation or com
munication, interference with the exercise of the rights of either party hereunder
by any third party and any other event which may not reasonably be prevented
or controlled. Any party in default may not invoke force majeure occurring
subsequent to such default as an excuse therefor unless such party is prevented
from the exercise of its rights to remedy such default, within the time prescribed
in Article 43 hereof, by reason of such force majeure.
Article 45
If any question shall arise hereunder about which the parties hereto are unable
to agree, including without being limited to the questions of whether one party is
in default hereunder and what action, if any, shall be taken by the party claimed
to be in default in respect of such claimed default, and whether or not any default
shall have been remedied and, if not, what further action shall be taken to remedy
such default, either party may notify the other in writing that a dispute exists,
specifying the nature of such dispute, designating one of the arbitrators to whom
such dispute shall be referred and demanding that the other party notify such
party in writing, within thirty (30) days after the receipt of such notice of the
existence of a dispute, of the designation by such other party of a second
arbitrator. Such arbitration shall, within thirty (30) days after the designation
of the second arbitrator, appoint a referee whose decision with respect to the dispute
shall govern in the event that the arbitrators shall fail to agree. In the event that
no second arbitrator is designated, within the time hereinabove prescribed for
such designation, the first arbitrator shall have full and complete power to
determine the dispute. If the arbitrators are unable, within the time hereinabove