Exercise caution before applying termination and suspension clauses and, if you want these rights to be invoked, be sure to strictly comply with the termination and procedural requirements of the contract. It is important to distinguish between the suspension of a contract (the temporary termination of the performance of the contract) and the suspension of a supplier, contractor or service provider. The former may be invoked by both contracting parties for certain reasons, such as force majeure.B. It is a decision of the purchaser to suspend the other party from participating in the tendering procedure (debarment) or signing a contract for a fixed period following a breach of contract or other violations under the public procurement rules. Contracts should contain a provision under which one of the parties suspends or terminates the contract under certain conditions. The reasons for the suspension or termination of a contract are normally defined in the terms and conditions of the contract. The agreement should also include a termination clause with the possibility of completely terminating the payment in the event of repeated cancellation. Some agreements – for example. B work contracts – require timely implementation, and if not, the parties should have some recourse. They don`t want to wait indefinitely for performance. A well-written contract can help you avoid many problems, so the advice of a professional before signing one is often beneficial. In cases where you do not think that a suspension of the contract is sufficient or that there is no force majeure clause, it is necessary to consider your liability of the contract in the event of termination.
There is a very close connection between suspension and termination and, depending on the wording of the clause, the final result of a suspension clause may be equivalent to the result of a termination clause insofar as each party has the right to terminate the contract at the end of the agreed suspension period. The suspension of the contract does not necessarily result in termination. The reasons must be taken into account in the treaty. An example of a situation that could result in a suspension of the contract is the temporary inability of a supplier, contractor or service provider to comply with the terms of the contract for reasons beyond their control (force majeure). If an owner`s actions delay the progress of a project but the suspension clause is not invoked, the contractor may request a constructive suspension. Contractors may apply for suspension if the suspension takes sufficient time to influence the progress of the project or cause delays. Typically, an analysis of the plan`s delay is required to assess the impact on project progress in a co-blocking claim. If there is any doubt as to whether the force majeure clause has been triggered or is applied in the current circumstances, specialized legal advice should be obtained with reference to your contract text and the particular circumstances that affect your business. If this is not the case and you are illegally suspended, you could be in violation of the treaty and be held liable for losses resulting from the suspension. This does not mean, however, that the parties are not open to seeking a trade compromise.
Finally, after the pandemic, it is likely that both sides would likely wish to resume their trade relations. When the parties decide to negotiate a temporary suspension of the contract in the absence of a force majeure clause, they should conduct negotiations on a so-called “unprejudiced” basis (i.e. on the list) in order to preserve their position and not harm themselves.