Public hospital contracts—Act, s 14 (2) (c)
7 Public hospital contracts—Act, s 14 (2) (c)
The Territory must notify Calvary in writing which public hospital contracts (the nominated contracts) the Territory proposes to have novated or assigned to it.
Calvary must use all reasonable endeavours to ensure the Territory receives the full benefit of the nominated contract including by procuring the execution of deeds of assignment or novation if consent and agreement of a third party is required.
The Territory must—
assume the rights and liabilities under each nominated contract novated or assigned to it under this section; and
cooperate with Calvary in any reasonable arrangement intended to transfer to the Territory the benefit and the burden of each of those contracts.
If a nominated contract (a residual nominated contract) is not effectively assigned or novated to the Territory, on the written request of the Territory—
Calvary or a related corporation must account to the Territory for any benefit it receives in relation to the contract; and
Calvary must do all things reasonably required by the Territory to ensure that the Territory receives the benefit of the contract; and
Calvary or a related corporation must hold the benefit of the contract on bare trust for the Territory and deal with the contract only as directed by the Territory.
The Territory may give written notice (which must not be less than 7 days) to Calvary and the third party under a residual nominated contract that the Territory intends to novate the contract to the Territory.
However, the Territory may only give notice under subsection (5) if it considers that novating the residual nominated contract is necessary for—
the safe and orderly transition of the operation of the public hospital to the Territory;
the continued operation of, and maintenance of service delivery standards at, the public hospital.
If the Territory gives notice in relation to a residual nominated contract under subsection (5)—
the contract is novated on the day stated in the notice; and
the third party may at any time 6 months after the contract is novated to the Territory, or any other period stated in the notice, terminate the contract by 14 days written notice to the Territory; and
if the third party terminates the contract under paragraph (b), the third party is not liable to the Territory for breach of the contract or for any compensation to the Territory because of the termination.
Calvary is liable for any liability, loss or expense the Territory incurs because of a default by Calvary or a related corporation under, or breach by Calvary or a related corporation of, any nominated contract before the day the contract is assigned or novated to, or held in trust for, the Territory.
The Territory is liable for any liability, loss or expense Calvary or a related corporation incurs as a result of any breach under, or breach by the Territory of, any nominated contract after the day the contract is assigned or novated to, or held in trust for, the Territory.
Part 3 Amendment of Crown lease
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