Contract Termination Insolvency Clause

Summary

Clause 29.5 allows contract termination if an insolvency event occurs, with a 20-day period for the company to novate the contract to a nominee. Key proposal points include ensuring sufficient notice periods, assessing the nominees financial stability, outlining a clear novation process, and protecting the supplier if the nominee faces insolvency. Additional considerations include requiring supplier consent for nominee selection, verifying the nominees financial standing, securing payments, and maintaining continuity of contract terms.

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*. Supplier Consent *. Financial Standing of Nominee *. Security of Payment *. Continuity of Terms:
Here are some additional details on the points you've mentioned:
*. Supplier Consent: Ensure that the Supplier's consent is required for the nomination of a new party, giving them control over who takes over the contract.
*. Financial Standing of Nominee: Implement a clause requiring the nominee to provide proof of financial stability, such as financial statements or credit reports.
*. Security of Payment: Include provisions for securing payments, like bank guarantees or advance payments, to protect against non-payment by the nominee.
*. Continuity of Terms: Ensure that all existing terms of the contract continue to apply to the nominee to prevent any loss of rights or obligations.
If you need further details or have more questions, feel free to ask!