Termination of stopped performance Clause Samples
The 'Termination of stopped performance' clause defines the conditions under which a contract may be terminated if one party ceases to perform its obligations. Typically, this clause outlines the process for notifying the non-performing party, sets a timeframe for resuming performance, and specifies the rights of the other party to terminate the agreement if performance is not resumed. Its core practical function is to provide a clear mechanism for ending the contract when performance has stopped, thereby protecting the interests of the party still willing to perform and reducing uncertainty in the event of a prolonged stoppage.
Termination of stopped performance. If a stop performance order is not cancelled and the performance covered by such order is terminated for default or convenience, the reasonable costs resulting from the stop performance order shall be allowable by adjustment or otherwise.