Article 39 -  Decease  39.1. Where the contractor is a natural person, the contract shall be automatically terminated if  that person dies. However, the contracting authority shall examine any proposal made by  the heirs or beneficiaries if they have notified their wish to continue the contract. 39.2. Where the contractor consists of a number of natural persons and one or more of them  die, a report shall be agreed between the parties on the progress of the contract, and the  contracting authority shall decide whether to terminate or continue the contract in  accordance with the undertaking given by the survivors and by the heirs or beneficiaries,  as the case may be.  39.3. In the cases provided for in Articles 39.1 and 39.2, persons offering to continue to  perform the contract shall notify the contracting authority thereof within 15 days of the  date of decease. The decision of the contracting authority shall be notified to those  concerned within 30 days of receipt of such proposal.  39.4. Such persons shall be jointly and severally liable for the proper performance of the  contract to the same extent as the deceased contractor. Continuation of the contract shall  be subject to the rules relating to establishment of any guarantee provided for in the  contract.  40.1. The parties shall make every effort to settle amicably any dispute relating to the contract  which may arise between them.  40.2. Once a dispute has arisen, a party shall notify the other party of the dispute, stating its  position on the dispute and any solution which it envisages, and requesting an amicable  settlement. The other party shall respond to this request for amicable settlement within 30  days, stating its position on the dispute. Unless the parties agree otherwise, the maximum  time period laid down for reaching an amicable settlement shall be 120 days from the date  of the notification requesting such a procedure. Should a party not agree to the other  party's request for amicable settlement, should a party not respond in time to that request  or should no amicable settlement be reached within the maximum time period, the  amicable settlement procedure is considered to have failed. 40.3. In the absence of an amicable settlement, a party may notify the other party requesting a  settlement through conciliation by a third person. If the European Commission is not a  party to the contract, it may accept to intervene as conciliator. The other party shall  respond to the request for conciliation within 30 days. Unless the parties agree otherwise,  the maximum time period laid down for reaching a settlement through conciliation shall  be 120 days from the notification requesting such a procedure. Should a party not agree to  the other party's request for conciliation, should a party not respond in time to that request  or should no settlement be reached within the maximum time period, the conciliation  procedure is considered to have failed. 40.4. If the amicable settlement procedure and, if so requested, the conciliation procedure fails,  each party may refer the dispute to either the decision of a national jurisdiction or  arbitration, as specified in the special conditions. August 2020 c4e_annexigc_en  Page 32 of 36  SETTLEMENT OF DISPUTES AND APPLICABLE LAW  Article 40 -  Settlement of disputes 