3.21 If BT's performance is persistently poor or falls below the standards at which the maximum service credits are payable, the Department may deem them to be in breach of contract. In this case the Department can suspend payments until their performance improves. If there is no improvement, the Department can terminate the relevant part of the contract and replace BT with another supplier.
3.22 The Department can terminate part or parts of the contract if BT commit a material breach or persistent breaches which together amount to a material breach. They can only terminate the whole contract if a breach materially deprives the Department of the benefit of the contract. The expression "benefit of the contract" is not defined in the contract, as it is standard practice to avoid definitions which are too restrictive and therefore more likely to lead to disputes. The Department consider that their ability to terminate parts of the contract will provide them with sufficient protection in the event of breaches as they believe that it would not be practical to terminate the whole contract.