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This is an unofficial draft of Article 2B from April 15, 1998. For the current official version, see the University of Pennsylvania Law School (Official NCCUSL) site at http://www.law.upenn.edu/library/ulc/ulc.htm SECTION 2B-714. RIGHT TO DISCONTINUE. Notwithstanding Section 2B-715 and 716, in an access contract, in the event of a material breach of contract or if the agreement so provides, a party may discontinue all contractual rights of access of the breaching party Reporter's Notes: 1. Right to Deny Access. This section deals with the right of a party in an access contract to stop performance under two significant circumstances. The ability to act quickly in an access contract is potentially critical to party's ability to avoid continuing liability risk, as might occur where the basis of the breach includes use of the access system to distribute infringing, libelous, or otherwise damaging material. It corresponds to current common law principles regarding access to facilities - treating these as arrangements subject to cancellation at will by the party who controls the facility unless the contract otherwise provides. The right to discontinue is recognized in licenses whose basic nature entails a contractual permission to access or use a resource owned or controlled by the licensor. In such cases, the contract will be treated as subject to termination a will (even without a breach). See Ticketron Ltd. Partnership v. Flip Side, Inc., No. 92-C-0911, 1993 WESTLAW 214164 (ND Ill. June 17, 1993) (termination of access to ticket services through licensor owned facilities). This right is independent of Sections 2B-715 and 716. In cases where the information available for access is information of the breaching party, the breaching party's rights to recover the information are protected under other provisions of this Article. 2. Not Related to Retaking Transfers. This section does not create a right to retake transfers already made, but merely to stop future performance. Article 2 and Article 2A are similar in reference to the seller's (lessor) right to stop delivery of goods in transit. This subsection derives in part from Section 2A-525(1). It does not create special rules for insolvency. Cases of insolvency will be handled either in the definition by contract of material breach or in the rules dealing with insecurity about future performance. This grants lesser rights to the transferor than do either Article 2 or 2A. Both give a right to stop shipment in the event of discovered insolvency. |