–after breach-of-contract fallout with ‘Right Start’

THE Linden Mayor and Town Council has terminated its agreement with Right Start Foundation to host the All Black Concept Party as part of the Linden Town Week, citing breaches of the pact by the promotions company.

In August 2017, the Council reserved the right to host Linden Town Week 2018 in honour of the Town’s 48th Anniversary, with the aim of stimulating economic activities to the direct benefit of the residents of Linden, and to garner funds to address waste management issues in the township. It is on this premise that the Council moved to award event franchises, one being the Linden Town Week All-Black Party, which has grown to become the largest such event in the country, and an economically viable exercise to promoters.
“This event soon became a source of contention among promoters, and eventually was awarded on Saturday 30th December, 2017 by way of the highest-bidder process to Right Start Foundation, who won at the tune of $3,600,000,” the Town Council said in a release.

But according to the Council, contrary to accepted bidding procedures, the winner was not required to make any payment on the day of bidding, and was given time to review the Event Franchisee Agreement and to offer in writing, proposed amendments to the Council for consideration, upon signing the franchise.
After that, it would have been required to pay 60 per cent of the sum within one week, and the remaining 40 per cent on or before 31st January, 2018.
But on Friday 12th January, 2018, after dispatching proposed amendments, the Council considered and Right Start Foundation proceeded to sign the said agreement.

As guided by Clause 4 (Franchise fee) of the Event Franchisee agreement, the first installment should have been paid within one week of signing, but was not upheld by the Franchisee.
This led to the Linden Town Week Secretariat calling and writing Right Start to remind them of their obligations.
When that failed to elicit a response from Right Start, the LMTC took a decision during its Wednesday, 24th January, 2018 statutory meeting (the highest decision-making forum in the Local Government organ) to amend the clause that stipulated the 60 per cent and 40 per cent payment method to now reflect that 100 per cent of full payment be made by the already established 31st January, 2018 deadline.

Then, one day before the deadline, Right Start decided to collect their copy of the Agreement(despite being reminded in writing of its availability),and to write the Council proposing amendments of their own, which they submitted at approximately 16:00hrs on 31st January, 2018 but without any reference to money.
Now the Council, having exhausted all options to amicably resolve the situation, was forced to terminate its agreement with Right Start to host the All Black Concept Party, effective 1st February, 2018.
It said it did so in accordance with Clause 12 of the agreement which states:
“The Franchisor may terminate this Agreement forthwith by notice in writing to the Event Franchisee under the following circumstances:
a) If the Event Franchisee shall have committed any material breach of his obligations hereunder or shall have failed to remedy any remediable breach within a period of 28 days of the receipt of a notice in writing of the Franchisor requiring him to do so;
b) if any sum or document required under the terms of this Agreement is not paid or submitted at the latest within the stipulated deadline; except in the case of written permission by the Franchisor; and
c) if the Event Franchisee challenges the Franchisor’s intellectual property rights, then:
“The termination or expiry of this Agreement shall be without prejudice to any rights and obligations conferred or imposed by this Agreement in respect of any period after such termination, and shall also be without prejudice to the rights of either party against the other in respect of any antecedent breach of any of the terms and conditions hereof.”

That done, the Council says it now “wishes to proceed with making Linden Town Week 2018 a success, and is currently exploring measures to re-award the All Black Concept Party to the second highest bidder.”
Linden Town Week 2018 is slated for April 21-May 1, 2018 under the theme, “Celebrating culture, talent, and creativity in a clean, green 2018”.