ࡱ>  %Q dbjbj Oeiei[V*#*#*#*#*#>#>#>#8v#D$$>#&%b*(***33CGX-//////$ԌRS*#K3"33KKS*#*#**hQQQKF*#**#*-QK-QQmI*Ns:#GKQ~0;ܐKܐ|Iܐ*#IJ"?JQWJkJJJJSSNJJJKKKKܐJJJJJJJJJX !:  FORMTEXT [Community Services - Novation Deed Template] Novation of Contract Deed [ABC PTY LTD] (Outgoing Party) ACN XXX/ ABN XXX [XYZ PTY LTD] (Incoming Party) ACN XXX/ ABN XXX AND [Insert State Party entity name][For a government department use The State of Western Australia acting through [insert name of department]. For a statutory authority or other body corporate, use the body corporate name as specified in the relevant enabling legislation] (Continuing Party) Before final sign off it is recommended that the Deed be referred to the State Solicitors Office to ensure there is no liability risk to the Department of Finance or the WA CONTENTS  TOC \o "1-3" \h \z \u  HYPERLINK \l "_Toc152234323" OPERATIVE PROVISIONS  PAGEREF _Toc152234323 \h 3  HYPERLINK \l "_Toc152234324" 1 Interpretation  PAGEREF _Toc152234324 \h 3  HYPERLINK \l "_Toc152234325" 1.1 Definitions  PAGEREF _Toc152234325 \h 3  HYPERLINK \l "_Toc152234326" 1.2 Rules for interpreting this Deed  PAGEREF _Toc152234326 \h 4  HYPERLINK \l "_Toc152234327" 1.3 Business Days  PAGEREF _Toc152234327 \h 4  HYPERLINK \l "_Toc152234328" 2. Consideration  PAGEREF _Toc152234328 \h 5  HYPERLINK \l "_Toc152234329" 3. Novation  PAGEREF _Toc152234329 \h 5  HYPERLINK \l "_Toc152234330" 3.1 Novation  PAGEREF _Toc152234330 \h 5  HYPERLINK \l "_Toc152234331" 3.2 No further rights and release from obligations  PAGEREF _Toc152234331 \h 5  HYPERLINK \l "_Toc152234332" 4. Representations and Warranties  PAGEREF _Toc152234332 \h 5  HYPERLINK \l "_Toc152234333" 4.1 Representations and warranties of each party  PAGEREF _Toc152234333 \h 5  HYPERLINK \l "_Toc152234334" 4.2 Repetition of representations and warranties  PAGEREF _Toc152234334 \h 6  HYPERLINK \l "_Toc152234335" 4.3 Reliance on representations and warranties  PAGEREF _Toc152234335 \h 6  HYPERLINK \l "_Toc152234336" 5. Notices  PAGEREF _Toc152234336 \h 6  HYPERLINK \l "_Toc152234337" 5.1 How to give a notice  PAGEREF _Toc152234337 \h 6  HYPERLINK \l "_Toc152234338" 5.2 When a notice is given  PAGEREF _Toc152234338 \h 7  HYPERLINK \l "_Toc152234339" 5.3 Address for notices  PAGEREF _Toc152234339 \h 7  HYPERLINK \l "_Toc152234340" 6. General  PAGEREF _Toc152234340 \h 7  HYPERLINK \l "_Toc152234341" 6.1 Governing law  PAGEREF _Toc152234341 \h 7  HYPERLINK \l "_Toc152234342" 6.2 Liability for expenses  PAGEREF _Toc152234342 \h 7  HYPERLINK \l "_Toc152234343" 6.3 Giving effect to this Deed  PAGEREF _Toc152234343 \h 7  HYPERLINK \l "_Toc152234344" 6.4 Amendment  PAGEREF _Toc152234344 \h 8  HYPERLINK \l "_Toc152234345" 6.5 Counterparts  PAGEREF _Toc152234345 \h 8  HYPERLINK \l "_Toc152234346" 6.6 Attorneys  PAGEREF _Toc152234346 \h 8  HYPERLINK \l "_Toc152234347" 7. Trust Warranties  PAGEREF _Toc152234347 \h 8  HYPERLINK \l "_Toc152234348" 7.1 Generally  PAGEREF _Toc152234348 \h 8  HYPERLINK \l "_Toc152234349" 7.2 Trust Covenants  PAGEREF _Toc152234349 \h 8  HYPERLINK \l "_Toc152234350" EXECUTED as a Deed  PAGEREF _Toc152234350 \h 10  HYPERLINK \l "_Toc152234351" Appendix 1: Community Services Novation of Contract Deed Template FAQs  PAGEREF _Toc152234351 \h 13  NOVATION OF CONTRACT DEED DATE: [insert date] PARTIES [ABC PTY LTD] ACN [000 000 000] / ABN [00 000 000 000] trading as [trading name] [in full] having its registered office at [insert address] (Outgoing Party) [XYZ PTY LTD] ACN [000 000 000] /ABN [00 000 000 000] trading as [trading name] [in full] having its registered office at [insert address] (Incoming Party) [Insert State Party entity name] [This must be the same as the State Party specified in the Service Agreement] of [insert agency address in full] (Continuing Party) RECITALS The Continuing Party and the Outgoing Party are parties to the Service Agreement. The Incoming Party is to replace the Outgoing Party under the Service Agreement on the terms of this Deed. OPERATIVE PROVISIONS 1 Interpretation 1.1 Definitions The following definitions apply in this Deed. Authorisation means: an authorisation, consent, declaration, exemption, notarisation or waiver, however it is described; and in relation to anything that could be prohibited or restricted by law if a Agency acts in any way within a specified time period, the expiry of that period without that action being taken, including any renewal or amendment. Business Day means a day that is not a Saturday, Sunday or public holiday in Perth. Deed means this Novation of Contract Deed. Effective Date means the date of this Deed. Agency means a: a government, government authority, government department or government body; a governmental, semi - governmental or judicial person; or a person (whether autonomous or not) who is charged with the administration of a law. Service Agreement means the service agreement contract formed by the Outgoing Partys offer under Request XXXX and the Continuing Partys acceptance of that offer contained in the letter of advice of acceptance dated DD/MM/YYYY, and any extension of that contract. The Service Agreement is for the supply of [Insert description of Services]. Tax means a tax, levy, duty, charge, deduction or withholding, however it is described, that is imposed by a Agency, together with any related interest, penalty, fine or other charge, other than one that is imposed on net income. 1.2 Rules for interpreting this Deed Headings and catchwords are for convenience only, and do not affect interpretation. The following rules also apply in interpreting this Deed, except where the context makes it clear that a rule is not intended to apply. A reference to: legislation (including subordinate legislation) is to that legislation as amended, reenacted or replaced, and includes any subordinate legislation issued under it; a document or agreement, or a provision of a document or agreement, is to that document, agreement or provision as amended, supplemented, replaced or novated; a party to this Deed or to any other document or agreement includes a permitted substitute or a permitted assign of that party; a person includes any type of entity or body of persons, whether or not it is incorporated or has a separate legal personality, and any executor, administrator or successor in law of the person; and anything (including a right, obligation or concept) includes each part of it. A singular word includes the plural, and vice versa. A word which suggests one gender includes the other genders. If a word is defined, another part of speech has a corresponding meaning. If an example is given of anything (including a right, obligation or concept), such as by saying it includes something else, the example does not limit the scope of that thing. The word agreement includes an undertaking, contract, warranty, representation or other binding arrangement or understanding, whether or not in writing. 1.3 Business Days If the day on or by which a person must do something under this Deed is not a Business Day: if the act involves a payment that is due on demand, the person must do it on or by the next Business Day; and in any other case, the person must do it on or by the previous Business Day. 2. Consideration Each party acknowledges that it has received valuable consideration for entering into this Deed. 3. Novation 3.1 Novation With effect from the Effective Date, the parties novate the Service Agreement so that the: Incoming Party replaces the Outgoing Party under the Service Agreement; Incoming Party has and assumes all the rights, liabilities and obligations of the Outgoing Party under the Service Agreement including rights, liabilities and obligations that arise before the Effective Date; Incoming Party and the Continuing Party are bound by and must comply with the Service Agreement; and Continuing Party has and may enforce all its rights and remedies under the Service Agreement against the Incoming Party, including rights and remedies that arise before the Effective Date. as if the Incoming Party were named as a party to the Service Agreement instead of the Outgoing Party. 3.2 No further rights and release from obligations With effect from the Effective Date, the Continuing Party and the Outgoing Party: have no further rights against each other under the Service Agreement including rights that arise before the Effective Date; and release each other from all obligations and liabilities under the Service Agreement including obligations and liabilities that arise before the Effective Date. 4. Representations and Warranties 4.1 Representations and warranties of each party The Incoming Party and the Outgoing Party jointly and severally represent and warrant to each other and to the Continuing Party that: (Power) they have/it has full legal capacity and power: to own their/its property and to carry on their/its business; and to enter into this Deed and to carry out the transactions that this Deed contemplates; (Corporate authority) they have/it has taken all corporate action that is necessary or desirable to authorise their/its entry into this Deed and to carry out the transactions that this Deed contemplates; (Authorisations) they hold/it holds each Authorisation that is necessary or desirable to: enable them/it to properly execute this Deed and to carry out the transactions that this Deed contemplates; and ensure that this Deed is legal, valid, binding and admissible in evidence, and they are/it is complying with any conditions to which any of these Authorisations is subject; (Deed effective) this Deed constitutes their/its legal, valid and binding obligations, enforceable against them/it in accordance with its terms; (No contravention) neither their/its execution of this Deed, nor the carrying out by them/it of the transactions that this Deed contemplates, does or will: contravene any law to which they/it or any of their/its property is subject or any order of any Agency that is binding on them/it or any of its property; contravene any Authorisation; contravene any law to which they/it or any of their/its property is subject or any order of any Agency that is binding on them/it or any of its property; contravene any undertaking or instrument binding on it/them or any of its/their property; or contravene their/its constitution; and (No trust) it is not entering into this Deed as trustee of any trust or settlement. [This clause must be deleted if a party notifies you that it acts as a trustee]. (No Breach) there is no unremedied default or breach of the Service Agreement. 4.2 Repetition of representations and warranties The representations and warranties in this clause REF _Ref67804016 \w \h \* MERGEFORMAT 4 are taken to be repeated on the Effective Date on the basis of the facts and circumstances as at that date. 4.3 Reliance on representations and warranties Each party acknowledges that each other party has executed this Deed and agreed to take part in the transactions that it contemplates in reliance on the representations and warranties that are made or repeated in this clause REF _Ref67804016 \w \h \* MERGEFORMAT 4. 5. Notices 5.1 How to give a notice A notice, consent or other communication under this Deed is only effective if it is: in writing, signed by or on behalf of the person giving it; addressed to the person to whom it is to be given; and either: delivered or sent by prepaid mail (by airmail, if the addressee is overseas) to that person's address; or sent by email with automatic receipt notification to that person's email address as notified by either party from time to time. 5.2 When a notice is given A notice, consent or other communication that complies with this clause REF _Ref67804043 \w \h \* MERGEFORMAT 5 is regarded as given and received: if it is delivered or sent by email: by 5 pm (local time in the place of receipt) on a Business Day  on that day; or after 5 pm (local time in the place of receipt) on a Business Day, or on a day that is not a Business Day  on the next Business Day; and if it is sent by mail  on actual receipt. 5.3 Address for notices A person's address and email address are those set out below, or as the person notifies the sender: Outgoing Party Address: [insert] Email address: [insert] Attention: [insert] Incoming Party Address: [insert] Email address: [insert] Attention: [insert] Continuing Party Address: [insert agency address] Email address: [insert email address] Attention: [insert agency contract manager]. 6. General 6.1 Governing law This Deed is governed by the law in force in Western Australia. 6.2 Liability for expenses The Outgoing Party and Incoming Party must jointly pay all the Continuing Party's expenses incurred in negotiating, executing and (if applicable) stamping this Deed but otherwise the Outgoing Party and the Incoming Party will each pay its own expenses incurred in negotiating, executing and stamping this Deed. 6.3 Giving effect to this Deed Each party must do everything (including execute any document), and must ensure that its employees and agents do anything (including execute any document), that any other party may reasonably require to give full effect to this Deed. 6.4 Amendment This Deed can only be amended, supplemented, replaced or novated by another agreement in writing signed by the parties. 6.5 Counterparts This Deed may be executed in counterparts. 6.6 Attorneys Each person who executes this Deed on behalf of a party under a power of attorney declares that he or she is not aware of any fact or circumstance that might affect his or her authority to do so under that power of attorney. 7. Trust Warranties 7.1 Generally Where the Incoming Party or any one or more of the parties so described as Incoming Party is or are now acting or in the future may act as trustee (hereinafter called the Trustee), the Incoming Party covenants with and warrants to the Continuing Party that the Trustee has or have or will have full powers pursuant to its constitution or memorandum and articles (if a company) and its deed of trust (hereinafter called the Trust) under which it purports to act when entering into this Deed. 7.2 Trust Covenants The Incoming Party covenants that:- the Trust is lawfully and validly constituted and all deeds and other instruments in respect thereof have been properly executed; the Trust is and throughout the term of the Service Agreement will remain unrevoked and not varied; the assets of the Trust as well as the assets of the Incoming Party will at all times be available to satisfy the obligations of the contractor under the Service Agreement ; the consents or approvals of all parties necessary to execute this Deed so as to bind the property of the Trust have been obtained and all necessary conditions precedent for that purpose have been met; no one has taken or threatened, nor is or the Incoming Party aware of any one who is likely, to take action to have the Trust wound-up or otherwise administered by action brought in any Court of competent jurisdiction or to charge the Trustee or any person at any time connected with the Trustee or acting on behalf or purportedly on behalf of the Trustee with any breach of trust or misappropriation of trust moneys in connection with the Trust; no facts are known to the Incoming Party whereby the Trust might be wound-up voluntarily or otherwise or the Trustee changed or the assets of the Trust vested in any other person or that the Trust may cease to operate or be deprived of funds prior to the expiration of the Term of the Service Agreement. EXECUTED as a Deed [This document is a deed, which requires specific execution clauses, dependent on the type of companies with which we are engaging. The following execution clauses may be applicable. Choose from the options after consultation with the parties, who are in the best position to tell drafters how the parties are required to execute deeds. Example execution clauses, to be used for incoming or outgoing parties in the execution table below:] Outgoing and Incoming Parties The Common Seal of [Name of Incorporated Association] [insert applicable execution clause for Incoming or Outgoing Party ABN ] was affixed in accordance with its rules established under the Associations Incorporation Act 2015 (WA) in the presence of:Signature / Position Insert applicable signature instructionCommon Seal here Insert applicable signature instructionName Insert applicable name instruction (Please type)Insert applicable name instruction (Please type) EXECUTED by [Name of corporation] [insert applicable execution clause for Incoming or Outgoing Party ACN/ABN] in accordance with section 127(1) of the Corporations Act 2001 (Cth) Signature / Position Insert applicable signature instructionSignature / Position Insert applicable signature instructionName Insert applicable name instruction (Please type)Name Insert applicable name instruction (Please type) The common seal of [Name of Local ] [insert applicable execution clause for Incoming or Outgoing Party ACN/ABN ] was affixed in accordance with section 9.49A of the Local Act 1995 (WA) in the presence of:Signature / Position Insert applicable signature instructionCommon Seal here Insert applicable signature instructionName Insert applicable name instruction (Please type)Insert applicable name instruction (Please type) The common seal of [Name of Aboriginal and Torres Strait Islander Corporation] [insert applicable execution clause for Incoming or Outgoing Party ACN/ABN ] was affixed in accordance with the section 99-5 of the Corporations (Aboriginal and Torres Straits Islander) Act 2006 (Cth) in the presence of:Signature / Position Insert applicable signature instructionCommon Seal here Insert applicable signature instructionName Insert applicable name instruction (Please type)Insert applicable name instruction (Please type) Continuing Party EXECUTED by the [insert State Party entity name][ensure this is the same as first page and Parties section]:Signature of [Accountable Authority / Delegate of Accountable Authority]Name of [Accountable Authority / Delegate of Accountable Authority] (Please Type) [EXECUTION TABLE TO BE ADAPTED (AS REQUIRED) AND INCLUDED IN EVERY DEED]: Appendix 1: Community Services Novation of Contract Deed Template FAQs [Please delete this appendix before signing the final completed Novation of Contract Deed] What is a novation? A novation is the substitution of a current service provider with a new service provider. A novation is an agreement in which a third party acquires the rights and obligations under a contract (in this case a service agreement). The novation effectively substitutes an existing party to the contract, typically a current service provider, with a new service provider. A Novation of Contract Deed will usually take the form of a tripartite agreement meaning that the three parties - both of the original parties to the contract and the new third party - all execute (sign) the Deed. Agreement to a novation is at the complete discretion of the government agencys delegated authority. Figure 1: Novation Transfer of both rights and obligations    Do I have to use the Novation of Contract Deed template? The Novation of Contract Deed template has been prepared by the State Solicitors Office for government agencies to use when novating a service agreement to a third party service provider. What is meant by the term, counterparts? The term counterparts means corresponding copies of a legal instrument. Clause 6.5 of the Novation of Contract Deed template allows signatories to sign any number of counterparts, that is, corresponding copies of the Deed. The signed counterparts taken together effectively constitute the Deed. How long should the Novation of Contract Deed be retained for? agency Records Retention and Disposal Schedules and/or the State Records Office determine the period of time that corporate information and documents are required to be retained. Each government agencys Records area should be able to advise the requisite period of time. When is a Novation of Contract Deed required? A Novation of Contract Deed is required if a different legal entity is taking over the rights and obligations of an existing party under a service agreement. If a service agreement needs to be transferred from one government agency to another government agency, how is the transfer achieved? A service agreement can be transferred from one government agency to another government agency through a letter issued and accepted by an authorised officer from both government agencies. If the relevant government agencies are separate legal entities the transfer may require a novation of contract deed. Agencies should obtain their own legal advice. Is there any due diligence required prior to entering into a novation? Due diligence may include: Corporate information on the new party, for example organisation capacity; corporate structure; profit status; Financial information; and Evidence of the new partys ability to perform the service agreement. agencies will need to make a determination of the required due diligence on a case by case basis. What are the key details of the parties needed to execute a novation of contract deed? It is important to include the parties correct legal name, Australian Business Number, and Australian Company Number if applicable. When does a novation of contract deed come into effect? A novation of contract deed comes into effect once the Deed is signed by all of the parties to the agreement. Who is authorised to sign a novation of contract deed? Only authorised officers of the parties and the Accountable Authority of a government agency (or delegate) can sign a novation of contract deed. In the case of an incorporated association, a Director, Chief Executive Officer or any other authorised officer with authority to execute a novation of contract deed as specified in the partys constitution can sign. Is Stamp Duty applicable to Novation of Contract Deeds? As per the  HYPERLINK "https://www.legislation.wa.gov.au/legislation/statutes.nsf/law_a770.html" Stamp Act 1921, whether Stamp Duty is paid depends on: The nature of the information contained in the document, particularly what type of goods, services or rights are being dealt with; and The nature of the parties to the service agreement, particularly when trying to determine instances where some not-for-profit organisations have to pay stamp duty and some dont. With regards to stamp duty, government agencies will need to make an assessment on a case by case basis. agencies should also note the effect of clause 6.2 Liability for expenses, in relation to liability for stamping and any other expenses incurred in negotiating and executing the Novation of Contract Deed. What is the difference between Novation and Assignment? A Novation is required when a new incoming party takes over both the contractual rights and obligations of the outgoing party. An Assignment is required when an incoming party takes over the contractual rights but not the obligations of the outgoing party.     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