Suspension or Termination Payments Clause Samples
The Suspension or Termination Payments clause defines the financial obligations that arise when a contract is suspended or terminated before completion. Typically, this clause outlines how and when payments are to be made to the affected party, such as compensation for work performed up to the suspension or termination date, reimbursement of costs incurred, or payment of agreed-upon termination fees. Its core practical function is to ensure that both parties understand their financial responsibilities in the event of a contract disruption, thereby reducing disputes and providing a clear mechanism for settling outstanding payments.
Suspension or Termination Payments. In general, suspension of performance or termination of any financial assistance under this Agreement will not invalidate the State's obligation to reimburse Consultant for costs and expenses properly incurred by Consultant and concurred in by the State before the suspension or termination date, to the extent those obligations cannot be canceled. However, if the State determines that Consultant has willfully misused State or Federal assistance funds by the gross negligence or willful failure to: make adequate progress; make reasonable use of the Project property, facilities, or equipment; or, adhere to the terms of this Agreement, the State reserves the right to require Consultant to refund the entire amount of State funding received by Consultant under this Agreement.