Common use of Termination Due to Default Clause in Contracts

Termination Due to Default. The Corporation may, without prejudice to any other rights it may possess under the Contract or law, at its option, terminate all or any part of the Work/ Work Order or the Contract forthwith by written notice to the Contractor, where: - (a) the Contractor has breached any of its obligations under the Contract, provided that, where remediable, the Corporation has notified the Contractor of such breach in writing and the Contractor has, upon receipt of such notice, failed to immediately commence and thereafter continuously proceed to remedy such breach to the Corporation’s reasonable satisfaction; or (b) the Contractor is not ready to commence the Work at the Site by the Commencement Date; or (c) If the contractor has, without reasonable cause, suspended the progress of the work or has failed to proceed with the work with due diligence and continues to do so after a notice in writing of seven days from the Officer in Charge; (d) If the contractor shall offer or give or agree to give to any person in Corporation service or to any other person on his behalf any gift or consideration of any kind as an inducement or reward for doing or forbearing to do or for having done or forborne to do any act in relation to the obtaining or execution of this or any other contract for Corporation; (e) If the contractor had secured the contract with Corporation as a result of wrong tendering or other non-bonafide methods of competitive tendering or commits breach of Integrity Agreement. (f) the Contractor has failed to complete the Work by the Completion Date stipulated in work order or extended date of completion; or (g) as provided in Clause 23 (Insolvency), one or more of the circumstances in that Clause apply. (h) Fails to submit Insurance Certificate(s), Performance Bank Guarantee(s); (i) Refuses or is unable to provide sufficient materials, services or labour (adequate resources) to execute and complete the Facilities in the manner specified in the Work Plan, at rates of progress that give reasonable assurance to the Corporation that the Contractor can attain completion of the Facilities/ Works by the Time for Completion; (j) Refuses or is unable to rectify, reconstruct or replace any defects in services delivered or work completed/in progress or that the Service/work is being performed in an inefficient or otherwise improper or un-xxxxxxx like manner to the satisfaction of the corporation. If termination occurs pursuant to this Clause 24.3 (Termination due to Default), then the Corporation’s sole liability to the Contractor shall be for all the sums properly due to the Contractor under the Contract in respect of the Work (or terminated part thereof) up to the date of termination. The Contractor shall have no claim towards compensation for any loss sustained by it for reasons of having purchased or procured any materials or entered into any engagements or made any advances on account or with a view to the execution of the Work or the performance of the Contract.

Termination Due to Default. The Corporation may, without prejudice to any other rights it may possess under the Contract or law, at its option, terminate all or any part of the Work/ Work Order or the Contract forthwith by written notice to the Contractor, where: - (a) the Contractor has breached any of its obligations under the Contract, provided that, where remediable, the Corporation has notified the Contractor of such breach in writing and the Contractor has, upon receipt of such notice, failed to immediately commence and thereafter continuously proceed to remedy such breach to the Corporation’s Corporation‟s reasonable satisfaction; or (b) the Contractor is not ready to commence the Work at the Site by the Commencement Date; or (c) If the contractor has, without reasonable cause, suspended the progress of the work or has failed to proceed with the work with due diligence and continues to do so after a notice in writing of seven days from the Officer in Charge; (d) If the contractor shall offer or give or agree to give to any person in Corporation service or to any other person on his behalf any gift or consideration of any kind as an inducement or reward for doing or forbearing to do or for having done or forborne to do any act in relation to the obtaining or execution of this or any other contract for Corporation; (e) If the contractor had secured the contract with Corporation as a result of wrong tendering or other non-bonafide methods of competitive tendering or commits breach of Integrity Agreement. (f) the Contractor has failed to complete the Work by the Completion Date stipulated in work order or extended date of completion; or (g) as provided in Clause 23 (Insolvency), one or more of the circumstances in that Clause apply. (h) Fails to submit Insurance Certificate(s), Performance Bank Guarantee(s); (i) Refuses or is unable to provide sufficient materials, services or labour (adequate resources) to execute and complete the Facilities in the manner specified in the Work Plan, at rates of progress that give reasonable assurance to the Corporation that the Contractor can attain completion of the Facilities/ Works by the Time for Completion; (j) Refuses or is unable to rectify, reconstruct or replace any defects in services delivered or work completed/in progress or that the Service/work is being performed in an inefficient or otherwise improper or un-xxxxxxx like manner to the satisfaction of the corporation. If termination occurs pursuant to this Clause 24.3 (Termination due to Default), then the Corporation’s Corporation‟s sole liability to the Contractor shall be for all the sums properly due to the Contractor under the Contract in respect of the Work (or terminated part thereof) up to the date of termination. The Contractor shall have no claim towards compensation for any loss sustained by it for reasons of having purchased or procured any materials or entered into any engagements or made any advances on account or with a view to the execution of the Work or the performance of the Contract.