21 EARLY TERMINATION

The intention of the parties to the Contract should be that it will run its full course and terminate on the Expiry Date (see Section 20 (Treatment of Assets on Expiry of Service Period)), but the Contract must deal comprehensively with the consequences of early termination. The Contract should specify precisely what compensation is payable if it is terminated early. The amount of compensation payable will depend on the reason for termination. Early termination can be caused by Authority Default (see Section 21.1 (Termination on Authority Default)), Contractor Default (see Section 21.2 (Termination on Contractor Default)), Force Majeure (see Section 21.3 (Termination on Force Majeure)) and Corrupt Gifts (see Section 21.4 (Corrupt Gifts and Fraud)), Uninsurability (see Section 25.10 (Risks that become Uninsurable)), and breach of Refinancing provisions (see Section 21.6 (Termination for breach of the Refinancing Provisions)). It can also be caused by the Authority exercising a right to terminate the Contract voluntarily (see Section 21.5 (Voluntary Termination by Authority and Section 21.5.4 (Authority Break Points)).

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