Wang IP Law Group, P.C.
Local 626-269-6753
Toll Free 888-827-8880

Explaining the concept of "termination for convenience"

The relative health of a company in City of Industry can often be gauged by the types of contracts it holds. Government contracts in particular are highly valued, which is why so many companies come to us here at The Wang IP Law Group PC after such agreements are broken inquiring as to what legal recourse might be available to them. If you lose such a contract for reasons you view to be unjustified, the desire to maintain your company's good reputation might prompt you to ask the same question. You should know, however, that government entities are often afforded a great deal of leeway when it comes to getting out of contracts. 

The law allows such entities the right to terminate contracts "for convenience." This basically means that your government partner can walk from your agreement if it believes it is in its best interest to do so without being subject to violations for breach of contract. According to the Congressional Research Service, federal courts have determined common scenarios where a government entity's interest may be compromised to be: 

  • If it no longer needs the goods or services secured by your contract
  • If you refuse its request to modify the contract
  • If it questions the continued performance of the contract
  • If you become ineligible to fill the contract
  • If your relationship has deteriorated 
  • If it believes it has the capacity to provide the goods or services in-house

You may still be able to hold your government partner accountable for ending your contract. To do, you would need to show that it likely operated in bad faith in that in never intended to respect the term of the agreement. More information on your potential remedies for breach of contract can be found on our site. 

No Comments

Leave a comment
Comment Information
Contact Us To Get Started

Contact Us To Get Started

Contact our office to schedule a free, initial consultation by dialing 888-827-8880 or by completing our brief, online questionnaire. Based in Los Angeles, our firm represents clients throughout California and in China, Hong Kong, Taiwan, Japan and Israel.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Our Locations

18645 East Gale Ave.
Suite 205
Industry, CA 91748

Phone: 626-269-6753
Map & Directions

Los Angeles
355 S. Grand Ave.
Suite 2450
Los Angeles, CA 90071

Toll Free: 888-827-8880
Phone: 626-269-6753
Map & Directions

18662 MacArthur Blvd.
Suite 158
Irvine, CA 92612

Phone: 626-269-6753
Map & Directions

Taiwan - Taipei
37F Taipei 101 Tower, No.7, Sec. 5 Xinyi Road
Taipei, Taiwan 11049

Map & Directions

QR Code