Mumbai, , India
Bid Manager, Contract Management, Procurement
0 Comment | 36 Views | 13 Jan 14  | Amrendra Kumar Saha
Hi, Greetings The Comments given by Mr. Johnston and saifee are very in agreement with my understanding Reproduce at the end of my comments for benefit of all . But based on my experience I would like to suggest some more precaution before proceeding for contract Termination. 1 Have we explored all the possibility to continue the relationship by means of High level meeting 2 What will be the situation of the Project for which Contract was made 3 What are other alternative available to meet the time line of Project after termination of the Contract 4 Have we checked that the Vendor which are under consideration for contract termination is not have any more contracts with our or our sister or group organization 5 What will be the impact on other vendors due to termination of contract with Vendor XYZ vendor 6 Have we collected all the points along with supporting documents so that we can proceed as per Terms of Contract for Termination without much high loos to our Organization If our answers for all the questions are in our favor then certainly proceed for contract termination within terms and conditions of Contract to avoid the further legal recourse which will be taken by Contractor and our organization may suffer. Regards, A.K.SAHA I was underdiscussions with fellow professional on above topics and liked their comment Mr. Saifees Comment It should be a clearly communicated intention by a party to a voidable contract that it is exercising its Contractual right to terminate rescind the contract. It is an irrevocable step that frees the other party as well from its contractual obligations, as if the contract never existed. Rescission may be on mutual consent, by an act of law, or by either party for reasonable cause such as a material misrepresentation. Mr. Johnstons Comment There are plenty of aspects to think about. These should have been dealt with within the terms and conditions of the contract. I would suggest that you look at the termination clauses within the contract plus also the on-going commitments of those clauses that will survive the contract for a period of time. For example, what notice period do you need to provide Do you have termination for convenience i.e. just because there is a Y in the name of the day you can cancel the contract Have there been any material breaches of the Ts Cs i.e. those that cannot be resolved which are core to the contract If breaches have occurred and there is a time period for them to be resolved to the clients satisfaction then has the supplier fulfilled those Have there been any breaches of confidentiality or IPR Has a particular breach of a clause been waived before i.e. no action taken and you now wish to invoked the terms of the clauses waived There are many and various ways of terminating a contract but you need to ensure what your termination rights under the signed contract and look at the potential ramifications of the method of termination. More information on the particular type of contract and the circumstances that are leading to you considering termination are needed however in order that a proper answer can be provided.

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