8.10  Unenforceable Contract

 
 


Although not strictly a termination event there is another scenario the Contract Manager should be aware of where services will not be provided by the Contractor and compensation will potentially be payable by the Authority to the Contractor. This is where the Contract becomes unenforceable due to the decision of a court following an application for a judicial review or an audit review. 

Under the WIDP Contract (Clause 4) in such a scenario the Relevant Discharge Terms apply meaning that compensation will be due to the Contractor

These issues should be dealt with in the Contract Management Manual. However as with termination issues this is an area of legal complexity and the Authority potentially has a large financial liability. Therefore, in addition to consulting the Contract Management Manual, the Contract Manager should escalate the issue immediately to the Contract Management Board and request additional senior legal and financial resource to be allocated to the team.