Common use of Period of Contract Clause in Contracts

Period of Contract. The period of contract is two years from the date of award. However, the Company shall be entitled to terminate the contract earlier than one year without any notice if in the opinion of the Company, the performance of the contract is not satisfactory, contractor engages in any unlawful act, or due to any other reasons, at the sole discretion of the company. 5.01 The contract will be valid for a period of two years, from the date of award. However the contract may be extended for further three months or part thereof, on the same rates, terms and conditions, with the mutual consent of the contractor and the Company. 5.02 Any increase or decrease in the price of diesel rates shall be adjusted on the basis of one litre equal to 4 Km / 10 MTs., which means for every 40 paise increase / decrease in diesel price, one paisa per KM / MT will be allowed in case of increase and will be reduced in case of reduction. The increase or decrease shall be governed on quarterly basis i.e., the increase or decrease during one quarter shall be accounted for in the succeeding quarter. (The formula is based on the truck load of 10 Mts., which has been taken for the Administrative convenience and has nothing to do with Motor Vehicle Act (MVA). The contractor has to follow MVA and loading in each truck has to be as per the laden capacity approved and registered.

Period of Contract. The period of contract is two years from the date of award. However, the Company shall be entitled to terminate the contract earlier than one year two years without any notice if in the opinion of the Company, the performance of the contract is not satisfactory, contractor engages in any unlawful act, or due to any other reasons, at the sole discretion of the company. 5.01 The contract will be valid for a period of two years, from the date of award. However the contract may be extended for further three months or part thereof, on the same rates, terms and conditions, with the mutual consent of the contractor and the Company. 5.02 Any increase or decrease in the price of diesel rates shall be adjusted on the basis of one litre equal to 4 Km / 10 MTs., which means for every 40 paise increase / decrease in diesel price, one paisa per KM / MT will be allowed in case of increase and will be reduced in case of reduction. The increase or decrease shall be governed on quarterly basis i.e., the increase or decrease during one quarter shall be accounted for in the succeeding quarter. (The formula is based on the truck load of 10 Mts., which has been taken for the Administrative convenience and has nothing to do with Motor Vehicle Act (MVA). The contractor has to follow MVA and loading in each truck has to be as per the laden capacity approved and registered.