Common use of Termination for Cause and for Convenience Clause in Contracts

Termination for Cause and for Convenience. 1. The Contracting Entity may, by written notice, terminate this Contract in whole or in part at any time, either for the Contracting Entity’s convenience or because of failure to fulfill the Contract obligations. Upon receipt of such notice services must be immediately discontinued (unless the notice directs otherwise) and all materials as may have been accumulated in performing this Contract, whether completed or in progress, delivered to the Contracting Entity. 2. If the termination is for the convenience of the Contracting Entity, an equitable adjustment in the Contract price will be made, but no amount will be allowed for anticipated profit on unperformed services. 3. If the termination is due to failure to fulfill the Contractor’s obligations, the Contracting Entity may take over the work and prosecute the same to completion by contract or otherwise. In such case, the Contractor shall be liable to the Contracting Entity for any additional cost occasioned to the Contracting Entity thereby. 4. If, after notice of termination for failure to fulfill Contract obligations, it is determined that the Contractor had not so failed, the termination will be deemed to have been effected for the convenience of the Contracting Entity. In such event, adjustment in the Contract price will be made as provided in paragraph (b) of this clause. 5. The rights and remedies of the Contracting Entity provided in this clause are in addition to any other rights and remedies provided by law or under this Contract.