PART 8Termination

Termination

regulation 18 + 18.—(1) Unless it is a fixed-duration contract with a duration of 12 months or less, a pig purchase contract must set out a process in accordance with which the parties can terminate the contract by giving written notice to the other party (“the termination process”).

(2) The termination process must specify the period of notice that each party is required to give in order to terminate the pig purchase contract without the consent of the other party.

(3) The termination process must provide that any notice to terminate the contract must specify the date that the contract is to be terminated.

(4) A pig purchase contract must provide that the qualifying seller may immediately terminate the contract without the consent of the business purchaser by giving the business purchaser a written notice—

regulation 18 4 a + (a)where the business purchaser is insolvent;

regulation 18 4 b + (b)within 14 days of the qualifying seller becoming aware of there having been a material breach of the pig purchase contract by the business purchaser except for a failure to make a payment in accordance with the contract (in respect of which, see sub-paragraphs (c) and (d));

regulation 18 4 c + (c)where—

regulation 18 4 c i + (i)the business purchaser fails to make a payment in accordance with the pig purchase contract;

regulation 18 4 c ii + (ii)the qualifying seller gives notice to the business purchaser of that failure; and

regulation 18 4 c iii + (iii)the payment is not made within seven days of that notice being given,

within 21 days of that notice being given;

regulation 18 4 d + (d)within 14 days of the third occasion on which the business purchaser fails to make a payment in accordance with the pig purchase contract, whether or not any previous failures to pay have been remedied;

regulation 18 4 e + (e)within 14 days of the death of a relevant person; or

regulation 18 4 f + (f)within 14 days beginning with the day on which a requirement to pay a civil penalty or compensation is imposed on the business purchaser in respect of the pig purchase contract under regulation 20(1).

(5) A “relevant person” is a person named in the pig purchase contract whose death enables the pig purchase contract to be immediately terminated in accordance with paragraph (4)(e).

(6) A pig purchase contract may not contain any provision that—

regulation 18 6 a + (a)purports to allow the business purchaser to alter the pricing method or price per quantity of pigs under the contract as a consequence of notice to terminate the contract having been given; or

regulation 18 6 b + (b)purports to restrict the ability of a qualifying seller to give notice on a particular day.