Appendix 1: Breach / Termination Of Contract

The following sections are included in the State Services Commission's standard agreement with individuals or organisations contracted to provide services to the Commission.

Where:

(a) the Consultant is in breach of this Agreement and, having been notified of that breach by the Commissioner has failed to remedy the breach within a reasonable period of time; or

(b) the Consultant is unable for any reason whatsoever to provide the services required under .... this Agreement, the Commissioner may forthwith terminate this Agreement.

Where the Consultant or any of its employees is accused of any misconduct, whether relating to this Agreement or otherwise, which may have the effect of bringing the Commissioner or the State Services Commission into disrepute, the Commissioner may suspend the operation of this Agreement and will comply with the requirements of natural justice before terminating the Agreement.

The Commissioner reserves the right at any time to postpone, cancel or abandon the whole of the work or any part thereof, provided that in such an event the Consultant shall be entitled to payment for work actually done plus any costs .... incurred up to the date of termination.

Upon termination of this Agreement the Consultant shall forthwith return to the Commissioner all working papers, reports and any other papers and information relating to the assignment other than copies permitted under Clause 5.2 [All working papers, reports and other papers or information produced or obtained in any manner whatsoever in carrying out this assignment shall be the property of the Commissioner. Provided that the Commissioner shall allow the Consultant reasonable access to such papers, reports and information and may, at the discretion of the Commissioner, allow the Consultant to retain copies of any such papers subject to such terms and conditions as the Commissioner may require].

Where the Commissioner is in breach of this Agreement and having been notified of that breach by the Consultant has failed to remedy the breach within a reasonable period of time, the Consultant may forthwith terminate this Agreement.

Consequences of Breach

Subject to Clause 7.2, [The Consultant shall not be liable to compensate the Commissioner for costs incurred by the Commissioner as a consequence of the Consultant's failure or delay in undertaking the assignment if such failure or delay is due to causes or circumstances beyond the Consultant's control] where there is a breach of this Agreement, and the Commissioner suffers loss, the Consultant shall be liable to meet any costs incurred by the Commissioner either directly or indirectly as a consequence of the breach, whether or not the Agreement is terminated because of the breach.

The Consultant shall not be liable to compensate the Commissioner for costs incurred by the Commissioner as a consequence of the Consultant's failure or delay in undertaking the assignment if such failure or delay is due to causes or circumstances beyond the Consultant's control.

The termination of this Agreement shall be without prejudice to the rights of the parties accrued up to the date of the termination. Specifically, and without limiting the generality of the foregoing, the termination of this Agreement shall not:

(a) relieve or release the Commissioner from making any payment which may be owing to the Consultant under the terms of this Agreement at the date of termination; or

(b) affect those clauses within this agreement which, by their nature, are intended to survive termination.

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