21.4.1.1 The Contract must deal comprehensively with termination as a result of corrupt acts or fraud involving the Contractor, any sub-contractor and any servant of the Crown.
21.4.1.2 A balance must be struck between the Authority's proper desire for the right to free itself from a corrupt or fraudulent partner and the financiers' fear of losing their funding for reasons beyond their control due to the corrupt actions of the Contractor or third parties or an individual within either of them.
21.4.1.3 The required drafting for the corruption and fraud that should be dealt with in such a Clause is as follows:
"Prohibited Act" means:
(a) offering giving or agreeing to give to [any servant of the Crown371] any gift or consideration of any kind as an inducement or reward:
(i) for doing or not doing (or for having done or not having done) any act in relation to the obtaining or performance of this Contract or any other contract with the Crown; or
(ii) for showing or not showing favour or disfavour to any person in relation to this Contract or any other contract with the Crown;
(b) entering into this Contract or any other contract with the Crown in connection with which commission has been paid or has been agreed to be paid by the Contractor or on its behalf, or to its knowledge, unless before the relevant contract is entered into particulars of any such commission and of the terms and conditions of any such contract for the payment thereof have been disclosed in writing to the Authority;
(c) committing any offence:
(i) under the Prevention of Corruption Acts 1889-1916;
(ii) under Legislation creating offences in respect of fraudulent acts, or
(iii) at common law in respect of fraudulent acts in relation to this Contract or any other contract with the Crown; or
(d) defrauding or attempting to defraud or conspiring to defraud the Crown.
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371 This will need to be amended where the Authority is not a central government department. For example, the English NHS Guidance refers to the "[Authority] or any other public body or any person employed by or on behalf of [the Authority] or any other public body".