SCHEDULE 3OTHER CONTRACTUAL TERMS
PART 9VARIATION AND TERMINATION OF AGREEMENTS
Termination by the Relevant Body: remedial notices and breach notices71
1
Where a contractor has breached the agreement other than as specified in paragraphs 68 to 70 and the breach is capable of remedy, the Relevant Body shall, before taking any action it is otherwise entitled to take by virtue of the agreement, serve a notice on the contractor requiring it to remedy the breach (“remedial notice”).
2
A remedial notice shall specify—
a
details of the breach;
b
the steps the contractor must take to the satisfaction of the Relevant Body in order to remedy the breach; and
c
the period during which the steps must be taken (“the notice period”).
3
The notice period shall, unless the Relevant Body is satisfied that a shorter period is necessary to—
a
protect the safety of the contractor’s patients; or
b
protect itself from material financial loss,
be no less than 28 days from the date that notice is given.
4
Where a Relevant Body is satisfied that the contractor has not taken the required steps to remedy the breach by the end of the notice period, the Relevant Body may terminate the agreement with effect from such date as the Relevant Body may specify in a further notice to the contractor.
5
Where a contractor has breached the agreement otherwise than as specified in paragraphs 68 to 70 and the breach is not capable of remedy, the Relevant Body may serve notice on the contractor requiring the contractor not to repeat the breach (“breach notice”).
6
If, following a breach notice or a remedial notice, the contractor—
a
repeats the breach that was the subject of the breach notice or the remedial notice; or
b
otherwise breaches the agreement resulting in either a remedial notice or a further breach notice,
the Relevant Body may serve notice on the contractor terminating the agreement with effect from such date as may be specified in that notice.
7
The Relevant Body shall not exercise its right to terminate the agreement under sub-paragraph (6) unless it is satisfied that the cumulative effect of the breaches is such that the Relevant Body considers that to allow the agreement to continue would be prejudicial to the efficiency of the services to be provided under the agreement.
8
If the contractor is in breach of any obligation and a breach notice or a remedial notice in respect of that default has been given to the contractor, the Relevant Body may withhold or deduct monies which would otherwise be payable under the agreement in respect of that obligation which is the subject of the default.