Guide Standard conditions of contract

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20. Bankruptcy/insolvency

20.1        If any bankruptcy petition shall be presented in respect of the Supplier, or if the Supplier shall become bankrupt or make any composition or arrangement with its creditors or commit any act of bankruptcy, or if the Supplier being a company passes any resolution of voluntary winding up or if a provisional liquidator, receiver or manager of the Supplier’s business is duly appointed or possession is taken thereof by or on behalf of the holders of debentures or under a floating charge, or if the Supplier is dissolved, or, where the Supplier is an individual, if he shall die or be adjudged incapable of managing his affairs within the meaning of Part VII of the Mental Health Act 1983, paragraph 20.2 shall apply. Reference in paragraph 20.2 to the Supplier’s representative shall include its trustee in bankruptcy, manager, liquidator, receiver or personal representatives as the case may be.


20.2        On the occurrence of any of the events described in the preceding paragraph, or in paragraph 6.3, the Buyer shall be at liberty to determine this Contract forthwith by notice in writing. Thereupon, without prejudice to any other of the Buyer’s rights, the Buyer may itself complete the Service or have it completed by a third party, using for that purpose (making a fair and proper allowance therefore in any payment subsequently made to the Supplier or its representative) all materials, plant and equipment on the Facility belonging to the Supplier, and the Buyer shall not be liable to make any further payment to the Supplier or its representative until the Service has been completed in accordance with the requirements of the Contract, and shall be entitled to deduct from any amount due to the Supplier or its representative the costs thereof incurred by the Buyer. If the total cost to the Buyer exceeds the amount, if any, due to the Supplier or its representative, the difference shall be recoverable by the Buyer from the Supplier or its representative as the case may be.


20.3        Termination under the preceding paragraphs shall not prejudice or affect any right of action or remedy which shall have accrued or shall thereupon accrue to the Buyer, and shall not affect the continuing requirements of paragraphs 17 and 21 to 30 inclusive of these Conditions.