Legal Definitions - termination-for-convenience clause

A termination-for-convenience clause is a provision in a contract that allows the government to end all or part of the contract at any time it chooses. This clause is often included in contracts for services, research and development, and fixed-price contracts.

• A company is hired by the government to provide IT services for a year. The contract includes a termination-for-convenience clause, which allows the government to end the contract at any time. After six months, the government decides to terminate the contract because it no longer needs the IT services.
• A research-and-development contract is awarded to a company to develop a new technology. The contract includes a termination-for-convenience clause, which allows the government to end the contract if the technology is no longer needed. After two years, the government decides to terminate the contract because the technology is no longer a priority.

These examples illustrate how a termination-for-convenience clause can give the government flexibility to end a contract if circumstances change. This can be beneficial for both the government and the contractor, as it allows for a quick and easy termination without the need for legal action.