Termination

Termination is the bringing to an end, with effect for the future, of the contractual relationship under a public procurement contract subject to Public Procurement Contracts Law No. 4735, upon the occurrence of one of the grounds provided for in the Law, the general specifications or the contract. In public procurement law, termination is not merely an act ending the contract; it is also a contractual sanction that may give rise to consequences such as liquidation, forfeiture of the security, penalties and debarment.