Common use of CONTRACT GUIDELINES Clause in Contracts

CONTRACT GUIDELINES. A. The State of Arkansas may not contract with another party: 1. To indemnify and defend that party for any liability and damages. However, the State Procurement Official may agree to hold the other party harmless from any loss or claim resulting directly from and attributable to the State's use or possession of equipment or software and reimburse that party for the loss caused solely by the State's use or possession (this is the only form of indemnification to which the State Procurement Official can agree). 2. Upon default, to pay all sums to become due under a contract. 3. To pay damages, legal expenses or other costs and expenses of any party. 4. To continue a contract once the maintenance/service has been canceled. 5. To conduct litigation in a place other than Pulaski County, Arkansas. 6. To agree to any provision of a contract that violates the laws or constitution of the State of Arkansas. B. The State of Arkansas may contract with another party: 1. To accept the risk of loss of the equipment or software and pay for any destruction, loss or damage of the equipment or software while the State has such risk, when the extent of liability for such risk is based upon the purchase price of the equipment or software at the time of any loss and the contract has required the State to carry insurance for such risk. 2. In the event funds are not appropriated for the equipment or software described in this agreement or there are no funded appropriations from which payment can be made, the State Procurement Official may, upon thirty days written notice to the vendor or lessor, cancel the agreement for that equipment or software.