Bearing in mind the fundamental purpose of the contract being to meet the needs of the residents, termination because of a dispute should be a last resort. But home owners won’t want to contract unless there are ways out for them if it becomes impossible to run their businesses at a reasonable profit, or intolerable to have a particular person on the premises, or unlawful to be offering the kind of care a person who has deteriorated, now needs. These eventualities should therefore be considered in advance, and provision made for them giving each party as much warning as possible about the decision. Clauses can be made part of the global agreement which most authorities have with homes, or the individual agreement in respect of a particular resident.
Termination By Notice
It could be agreed that either party may terminate the contract, regardless of whether the other party is or is even alleged to be in default, by giving at least (say 8) weeks notice. During the period of notice both parties should co-operate to ensure that the interests of the residents are not prejudiced by the termination.
There should be a clause that termination of the Contract under the ‘notice’ provision shall have no effect on the liability of either party to make payment of any sums arising under the Contract prior to the date upon which the termination takes effect.
Termination without notice
The following events could reasonably be considered to be of such a serious nature as to warrant the immediate termination of a contract, without any notice period, at the option of the Purchaser.
(i) Deemed failure to meet the required standards for the purchaser’s Health and Safety policies and procedures.
(ii) Deemed non-compliance with the provisions of the Health and Safety at Work etc. Act 1974, and any subsequent health and safety regulations, by the Service Provider.
(iii) Operation of the home without adequate Insurance Cover.
(iv) Deemed non-compliance with the requirements of Race Relations, Equal Opportunities legislation and Disability Discrimination legislation by the Service Provider.
(v) Conduct held by a Court to be incompatible with the standards laid down by the European Convention with regard to a resident, by the Service Provider.
(vi) Evidence of the deliberate misuse of drugs and/or medicines by the Service Provider, its servants or agents in relation to any client on the Provider’s premises.
(vii) Significant evidence of the deliberate physical, financial, emotional, sexual or mental abuse and/or mistreatment of residents by the Service Provider, its servants or agents.
(viii) Where the Registration Certificate is cancelled, or the Provider has been convicted of an offence under the provisions of the Registered Homes Act 1984 and regulations thereto and any subsequent amendments.
(ix) Where the Provider becomes bankrupt, or makes a composition or arrangements with its creditors, or has a proposal in respect of its company for voluntary arrangement for a composition of debts, or scheme or arrangements approved in accordance with the Insolvency Act 1986.
(x) Where the Provider has an application made under the Insolvency Act 1986 to the court for the appointment of an administrative receiver.
(xi) Where the Provider has a winding-up order made (except for the purposes of amalgamation or reconstruction), or a resolution of a voluntary winding-up passed.
(xii) Where the Provider has a provisional liquidator, receiver or manager of its business or undertaking duly appointed.
(xiii) Where the Provider has an administrative receiver as defined in the Insolvency Act 1986 appointed.
(xiv) Where the Provider is in circumstances which entitle the court or a creditor to appoint, or have appointed, a receiver, a manager, or administrative receiver, or which entitle the court to make a winding-up order.
(xvi) Where the Provider is found on investigation to have offered any improper inducements or exerted unreasonable pressure upon potential Residents or their relatives, or others with an interest, to attempt to encourage the potential Resident to go into the Service Provider’s Home.
(xvii) Where the Provider, its servants or agents shall have committed any offence under the Prevention of Corruption Acts 1889 – 1916; or
(xviii) Where the Provider shall have given any undisclosed or illicit fee or reward to any elected member or officer of the County Council in order to gain a pecuniary advantage.
