Developing a Close-Out Plan in Procurement Management Plan Research Paper

Developing a Close-Out Plan in Procurement Management Plan - Research Paper ExampleThis calls in the level-headed advice from either the corporate legal counsel or an outside lawyer. This is a matter of withdrawing from the provisions of the outsourced contract. Usually the terms and processes for terminating a contract before sequence are spelled out in the initial contract. This section of the contract is called the landmark clause. This clause is there for the protection of both the buyer and the seller, since ratiocination before metre can severely damage the interests of either fellowship. Most procurement contracts usually require that the party who wants to terminate the contract before time must suggest the other party within a reasonable amount of time, failure to which can result in severe financial penalties for that party. Another aspect of termination clause is the substitute provider. The party who wants to forfeit being part of the legal contract will have to fi nd an alternative provider for the other party if it wants to get out of the contractual relationship. Such provisions and contingencies depend on the parties to the contract. There is no hard and fast rule to this as both parties coif the rules themselves of earlier termination in the initial contract (Beyond the Information Systems Outsourcing Bandwagon, 2005). If a contract has a written provision that any modification or termination by agreement should be in written form, then any termination or modification cannot be made effective otherwise. But as stated earlier, this agreement is made by the parties to the contract and termination or modification can be made possible and legitimately effective orally, in written form, by an act, by staying silent or by inaction, if the initial contract contains such a provision (Viscassilas, 2006). Categorizing the differences in termination of contracts There are three general scenarios in which one party feel the urge and have legal appr oval to end the contract Scenario A Termination for experience or Default (Sellers Gaffe) This is a classic fault from the sellers side in which the buyer is not satisfied by the part of the products or the delivery timings. In brief, the seller doesnt fulfill his contractual obligations in the way he is bound to fulfill them. Failure without legal alibi is the key term here that defines the sellers breach. Seller fails to complete his critical obligations and the buyer is fully defensible in terminating the contracting immediately. Breach from the sellers side should be material, which means that the damage to the buyer must be significant enough to give him the legitimate excuse to site off the contract. Scenario B Closure for the Suitability (of the Buying side) This tort is inspired by the Federal Acquisition Law which states that the federal government reserves the remunerate to end the procurement contract for its convenience. Many other political agencies have followed this law since and have acquired the same legal position in their procurement contracts. These governmental agencies can end the contract if and when they see fitting. These governmental bodies represent state, county and local and many industries are following this legal trend. If the buyer terminates the contract before it is legally expired, he/she needs to notify the seller at a reasonable time so as to not hurt him financially. After sending the notice, both parties must come to the negotiation table to sort