Terminating contracts “for convenience”

Terminating contracts “for convenience”

On Behalf of | Apr 23, 2019 | Business Law |

There is often added security when it comes to working with government partners in Baton Rouge. Yet that does not necessarily mean that your work with them is guaranteed. Due to their affiliations, they are often afforded special benefits. One of these is who they are allowed to treat their contractual agreements. Many of those that come to us Dale M. Maas, Attorney at Law find out too late just how much leeway government agencies are afforded in this area. 

You likely assume that any partner you have a contract with has to have cause to end an agreement. This is not so with government agencies. According to information shared by the Congressional Research Service, such organizations are automatically endowed with the luxury of terminating contracts “for convenience,” (or more specifically, for when it is most convenient for them). Some common reasons given as to why your government partner may choose to get out of its contract with you may include: 

  • It no longer needs the products or services you require (or is now capable of providing them in-house)
  • The costs of the contract or the work it involves are proving to be too costly 
  • Your working relationship with them has deteriorated 
  • Questions arise regarding your eligibility to be contracted with them
  • Potential issues with federal or state Comptrollers

Your government partner may also choose to end a contractual agreement with you simply because you refuse to renegotiate its terms. 

If your government partner does exercise its right to end your contract for convenience, you are entitled to be paid only for whatever work done up to the point of the agreement’s termination. You can learn more about enforcing your contracts by continuing to explore our site.