PRO-411 Contract Cancellation and Termination Procedures

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SCOPE: 

The purpose of this policy is to establish guidelines and procedure for determining if, and how, a contract is to be ended before its scheduled time due to cancellation or termination, or damages are to be assessed.

POLICY: 

A "contract" is any agreement between two or more parties which creates an obligation to perform. Acceptance of a purchase order constitutes a contract.

Contract cancellation occurs when either party ends a contract for breach by the other under the circumstances outlined herein in section I, B or C. The cancelling party retains any remedy for breach of the whole contract or any unperformed balance.

Termination occurs when either party ends a contract for cause (performance breaches of contract as outlined herein, other than those circumstances outlined in section I, B or C) or for convenience. Any parts of a contract that already have been completed will be left alone, but obligations for the future, not yet performed, will cease.

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PRO-411 Contract Cancellation and Termination Procedures