Termination of the Contract by the Contractor

Where, during the contract process and other than in cases of force majeure, the contractor notifies in writing, with reasons, that it will be unable to perform its undertaking by reason of financial incapacity, the performance bond and any additional performance bonds are forfeited without the need for any further notice, and the contract is terminated and the account liquidated under the general provisions. The contractor is debarred from tenders under Article 26 of Law No. 4735. The contractor is also required to compensate the loss and damage suffered by the contracting authority.