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17.14.1

the Contractor has breached the Contract and the PCT considers that as a result of that breach, the safety of the Contractor’s Patients is at serious risk if the Contract is not terminated; or

17.14.2

the Contractor’s financial situation is such that the PCT considers that the PCT is at risk of material financial loss.

17.15 If the Contractor breaches the condition specified in Clauses 7.21 to 7.2459 and it comes to the PCT’s attention that the Contractor has done so, the PCT shall serve notice in writing on the Contractor:

17.15.1

terminating the Contract forthwith; or

17.15.2

instructing it to terminate the sub-contracting arrangements that give rise to the breach forthwith, and if it fails to comply with the instruction, the PCT shall serve a notice in writing on the Contractor terminating the Contract forthwith.

Termination by the PCT: Remedial Notices and Breach Notices60  

17.16

Where the Contractor has breached the Contract other than as specified in Clauses 17.8 to 17.15 and the breach is capable of remedy, the PCT shall, before taking any action it is otherwise entitled to take by virtue of the Contract, serve a notice on the Contractor requiring it to remedy the breach (“remedial notice”).

17.17

A remedial notice shall specify:

17.17.1

details of the breach;

17.17.2

the steps the Contractor must take to the satisfaction of the PCT in order to remedy the breach; and

17.17.3

the period during which the steps must be taken (“the notice period”).

17.18

The notice period shall, unless the PCT is satisfied that a shorter period is necessary to protect the safety of the Contractor’s Patients or protect itself from material financial loss, be no less than [twenty eight (28)] days from the date that notice is given.

17.19

Where the PCT is satisfied that the Contractor has not taken the required steps to remedy the breach by the end of the notice period, the PCT may terminate the Contract with effect from such date as the PCT may specify in a further notice to the Contractor.

59 This provision is mandatory only in respect of breaches of Clause 7.24

60 See footnote to PART 17 generally.

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