TERMINATION OF THE MAIN CONTRACT – SUBCONTRACT AGREEMENT

TERMINATION OF THE MAIN CONTRACT

  • Without prejudice to any other provision of the Subcontract, if the Main Contract is terminated in whole or in part  (before the SUBCONTRACTOR has fully performed its obligations under this Subcontract and save as the case when the Main Contract is terminated due to the reason attributable to the SUBCONTRACTOR), then the CONTRACTOR may, at any time thereafter, by written notice to the SUBCONTRACTOR forthwith terminate in whole or in part the Subcontract without need for legal proceedings or a court decision and thereupon, the SUBCONTRACTOR shall expeditiously remove its personnel, Materials, Plant and SUBCONTRACTOR’s Equipment from the Subcontract Works Site.

The CONTRACTOR shall take all reasonable steps to secure from the COMPANY such financial benefits, if any, as may be due under the Main Contract and, upon receiving payment of any such financial benefits from the COMPANY, the SUBCONTRACTOR shall only be entitled to such proportionate and corresponding sums received by the CONTRACTOR under the Main Contract with regard to the Subcontract Works already executed in accordance with the Subcontract prior to such termination. It is agreed that the SUBCONTRACTOR shall not be entitled to claim against the CONTRACTOR if the CONTRACTOR is not entitled to claim or fails to receive any payment against the COMPANY with respect of such termination.

  • Notwithstanding the above, in the event of the termination of the Main Contract due to a proven breach by the CONTRACTOR and the Subcontract is terminated by the CONTRACTOR and always provided that SUBCONTRACTOR has in no way contributed to such breach, then the SUBCONTRACTOR shall be compensated in accordance with Clause 15.3.
  • If the Main Contract is terminated in whole or in part by the COMPANY as a consequence of a breach of this Subcontract by the SUBCONTRACTOR and if the CONTRACTOR is prevented thereby from recovering any sum from the COMPANY under the Main Contract in respect of the Subcontract Works, then without prejudice to any other remedy and method of recovery the CONTRACTOR may be entitled to for such breach under the Subcontract, the CONTRACTOR may deduct such sum from monies otherwise due to the SUBCONTRACTOR under this Subcontract.

 

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