Ceasing Performance upon Suspension Clause Samples

The "Ceasing Performance upon Suspension" clause allows a party to halt its contractual obligations if the agreement is suspended. In practice, this means that if one party invokes a suspension right—such as for non-payment or breach—the other party is not required to continue providing goods, services, or other deliverables during the suspension period. This clause serves to protect parties from having to perform under uncertain or unfavorable conditions, ensuring that obligations are paused until the underlying issue is resolved.
Ceasing Performance upon Suspension. From and upon the effective date of any suspension ordered by Owner, Design/Builder shall incur no further expense or obligations in connection with the Agreement, and Design/Builder shall cease its performance. Design/Builder shall also, at Owner’s direction, either suspend or assign to Owner any of its open or outstanding subcontracts or purchase orders.
Ceasing Performance upon Suspension. From and upon the effective date of any suspension ordered by Owner, Construction Manager shall not incur, nor permit any Subcontractor to incur, any further expense or obligations in connection with the suspended portion of the Work or the Services. From and upon the effective date of any suspension ordered by Owner, Construction Manager shall cease performing under this Agreement, and shall cause all Subcontractors to cease performing, in connection with the suspended portion of the Work or the Services, and shall utilize its best efforts to mitigate its costs resulting from the suspension.
Ceasing Performance upon Suspension. From and upon the effective date of any suspension ordered by the Municipality, the Contractor shall incur no further expense or obligations in connection with the Agreement, and the Contractor shall cease its performance. The Contractor shall also, at the Municipality’s direction, either suspend or assign to the Municipality any of its open or outstanding subcontracts or purchase orders.