Partial Termination for Default

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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 in part 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 following part of the Contract is terminated pursuant to section _____, Default by the Contractor, of general conditions _____, on the following grounds:

(Insert the terminated part(s) and the grounds for terminating the contract in part for default)

The Contractor must continue with the rest of the Work in accordance with the Contract.

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 which Canada may be obliged to pay in procuring the goods, services or both related to the part of the Contract being terminated 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 partial termination for default will trigger a Vendor Performance Corrective Measure assessment at the end of the contract. In addition, a note indicating that there was a partial termination for default for this contract will be registered in the Vendor Information Management system.