Article Date: 09/18/2015


Subcontract Termination for Convenience Enforceable


A termination for convenience clause in a private subcontract was enforceable because partial performance of the terminated agreement was sufficient consideration to support the unilateral clause. The prime contractor’s motivation in exercising its termination right was irrelevant and enforcement of the clause did not violate the implied duty of good faith and fair dealing.

 

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