Termination of contract by purchaser.

Without limiting the generality of paragraph A of this article, the purchaser shall have the right to terminate the contract at any time for any reason by giving the contractor two (2) days' prior written notice to such effect. Upon receipt of the notice, the contractor and its subcontractors shall immediately discontinue all work in progress which can be discontinued without creating a hazardous condition and cancel all outstanding commitments for material, equipment and apparatus which may be canceled without undue cost. The contractor shall notify the purchaser of any commitment which cannot be canceled without undue cost and the purchaser shall have the right to accept delivery or to reject delivery and pay the agreed upon costs. Subject to compliance with the above and any other applicable provision of the contract, purchaser shall pay to the contractor in full satisfaction and discharge of all amounts owing to the contractor under the contract reasonable and proper termination charges. These charges shall not include anticipated profit. The purchaser shall be entitled to all material specially accumulated for the order and included in the above charges, shipped at its expense; or, at its option, the salvage value of the material shall be deducted from the termination charges. The purchaser may, at its option and expense have an independent auditor agreeable to the contractor conduct an independent examination and certify that the contractor's charges are in accordance with contractor's standard practice.



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