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SECTION HEADING GOES HERE

26.1The purchaser may at any time terminate the contract by giving written notice to the supplier if the supplier becomes bankrupt or otherwise insolvent. In this event, termination will be without compensation to the supplier, provided that such termination will not prejudice or affect any right of action or remedy which has accrued or will accrue thereafter to the purchaser.

27. Settlement of Disputes

27.1If any dispute or difference of any kind whatsoever arises between the purchaser and the supplier in connection with or arising out of the contract, the parties shall make every effort to resolve amicably such dispute or difference by mutual consultation.

27.2If, after thirty (30) days, the parties have failed to resolve their dispute or difference by such mutual consultation, then either the purchaser or the supplier may give notice to the other party of his intention to commence with mediation. No mediation in respect of this matter may be commenced unless such notice is given to the other party.

27.3Should it not be possible to settle a dispute by means of mediation, it may be settled in a South African court of law.

27.4Mediation proceedings shall be conducted in accordance with the rules of procedure specified in the SCC.

27.5Notwithstanding any reference to mediation and/or court proceedings herein,

(a)the parties shall continue to perform their respective obligations under the contract unless they otherwise agree; and

(b)the purchaser shall pay the supplier any monies due the supplier.

28. Limitation of liability

28.1Except in cases of criminal negligence or willful misconduct, and in the case of infringement pursuant to Clause 6;

(a)the supplier shall not be liable to the purchaser, whether in contract, tort, or otherwise, for any indirect or consequential loss or damage, loss of use, loss of production, or loss of profits or interest costs, provided that this exclusion shall not apply to any obligation of the supplier to pay penalties and/or damages to the purchaser; and

(b)the aggregate liability of the supplier to the purchaser, whether under the contract, in tort or otherwise, shall not exceed the total

Procurement of Catering Services forTaking Parliament to the People: T9/2/2010

INITIAL: _____________

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