TERMINATION BY FRUSTRATION Sample Clauses
The 'Termination by Frustration' clause allows a contract to be ended if unforeseen events occur that make it impossible to fulfill the contract's original purpose. In practice, this clause applies when circumstances beyond the control of either party—such as natural disasters, legal changes, or other extraordinary events—render performance of the contract impracticable or pointless. Its core function is to provide a fair mechanism for both parties to exit the agreement without penalty when continuing would be unreasonable or impossible, thereby allocating risk for events outside the parties' control.
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TERMINATION BY FRUSTRATION. The Principal may terminate this Agreement if the Design and Construction Contract is terminated or if the Project or this Agreement is otherwise frustrated. If this Agreement is terminated on the basis of frustration, the Principal shall pay the Consultant:
(a) any amount then due to the Consultant but unpaid;
(b) for the Services carried out to the date of frustration which are not included in a previous payment claim;
(c) the cost of materials and equipment reasonably ordered by the Consultant for the Services and which the Consultant is liable to accept, but only if they will become the Principal’s property upon payment; and
(d) the costs reasonably incurred:
(i) returning to their place of engagement the Consultant, subconsultants and their respective employees engaged in the Services at the date of frustration; and
(ii) by the Consultant in expectation of completing the Services and not included in any other payment.
TERMINATION BY FRUSTRATION. No amendment. Insert the following clause:
TERMINATION BY FRUSTRATION. 46. NOTIFICATION OF CLAIMS
TERMINATION BY FRUSTRATION. 45 Delete clause.
TERMINATION BY FRUSTRATION. If, under the law governing the Contract, the Contract is frustrated, the Principal shall pay the Contractor—
(a) for work executed prior to the date of frustration, the amount which would have been payable if the Contract had not been frustrated and the Contractor had made a progress claim on the date of frustration;
(b) the cost of materials reasonably ordered by the Contractor for the work under the Contract, which the Contractor is liable to accept, but only if the materials become the property of the Principal upon payment; Lihir Gold Limited Contract No LGL-MO-0107 Provision of Geothermal Coring Services Part III: General Conditions of Contract
(c) costs reasonably incurred by the Contractor in the expectation of completing the whole of the work under the Contract and not included in any payment by the Principal;
(d) all retention moneys and security;
(e) the reasonable cost of removal of Constructional Plant;
(f) the reasonable cost of return to their place of recruitment of the Contractor’s employees engaged in the work under the Contract at the date of frustration.