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Public Services and Procurement Canada

Termination for Default

Legal text for SACC item

This is further to the Stop Work Order dated _____ (delete this paragraph if no Stop Work Order was sent by the Contracting Authority).

In accordance with the unrestricted right of Canada to terminate the Contract for default if the Contractor is in default in carrying out any of its obligations under the Contract, the Contracting Authority notifies the Contractor that the Contract is terminated for default pursuant to section _____, Default by the Contractor, of general conditions ________ on the following grounds:

(Insert the grounds for terminating the contract for default).

Canada reserves its right under the Contract to charge the Contractor for all losses and damages which Canada may suffer by reason of the default, including any amount in excess of the Contract Price that Canada may be obliged to pay in procuring the goods, services or both elsewhere.

(Insert the following paragraph when the termination relates to performance issues within the scope of the Vendor Performance Corrective Measures Policy)

In accordance with the Vendor Performance Corrective Measure Policy, this termination for default will trigger a Vendor Performance Corrective Measure assessment. In addition, a note indicating that there was a termination for default for this contract will be registered in the Vendor Information Management system.