Common use of Right to Terminate and Cancel Clause in Contracts

Right to Terminate and Cancel. In addition to other rights and remedies the Purchaser may have, the Purchaser may terminate this order in case of breach of any terms and conditions of this order by the Supplier. However, provided that Supplier’s breach is capable of remedy, Purchaser’s right to terminate is subject to the proviso that such breach has not been remedied by the Supplier within a reasonable grace period set by the Purchaser. The Purchaser shall be entitled to terminate this order by giving 30 days’ Notice to the Supplier in that behalf, without assigning any reason, therefore. All the obligations undertaken prior to such termination shall survive. After receipt of such a notice, the Supplier shall not process the said products and forthwith hand over all the machines/tools/drawings etc. which are in the Supplier’s custody, along with the product processed by the Supplier and remaining the Supplier’s custody. The Purchaser may at any time instruct the Supplier to suspend part or all of the supply and/or services of goods. During suspension the Supplier, without any cost to the Purchaser, shall protect, store and secure such part or all of the work or goods against any deterioration, loss or damage or other losses. All work so stopped shall be resumed by the Supplier based on a schedule to be mutually agreed upon between the Purchaser and the Supplier. It is further agreed between the parties that breach of this order shall, at the option of the Purchase, constitute breach of the other order /s with the Supplier, which will confer a right on the Purchaser to terminate the other order /s also at the risk and cost of the Supplier. Should the Supplier cease to make payments, or if an interim insolvency administrator is appointed or if insolvency proceedings are commenced in relation to the assets of the Supplier, the Purchaser may terminate the order and/or any purchase orders issued thereunder. In the event of termination, the Purchaser may continue to utilize existing facilities, deliveries or services already performed by the Supplier in exchange for reasonable payment.