What should you do in relation to the contractual negotiations?

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If you are halfway through a complex set of contractual negotiations with a potential vendor and your sponsor tells you that the project is likely to be cancelled, what should you do in relation to the contractual negotiations?

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This one is the BEST answer!
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This question relates not only to the value of honesty, but also to responsibility, fairness, and respect. You have a duty to not continue the negotiations until the future of the project is decided, and to inform the vendor of the reasons.

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continue with the negotiations but don't sign any contracts..lol I wanna know educate me

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