Termination for Default - As a result of bankruptcy, insolvency or receivership

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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 for default if the Contractor becomes bankrupt or insolvent or a receiving order is made against the Contractor, the Contracting Authority notifies the Contractor that the Contract is terminated for default pursuant to section _____, Default by the Contractor, of general conditions ____ as the Contractor is __________ (insert "bankrupt", "insolvent" or "in receivership", as applicable).

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 elsewhere.