CON 3910 Online Contracting Certification Practice Exam

You are a contracting officer who has a $260,000 commercial contract. You decide you need to terminate the contract because the contractor has failed to perform. What is the name of this type of termination?

For Noncompliance

For Failure

For Cause

Termination for cause is used when the government ends a contract because the contractor failed to meet performance obligations or breached the contract. In this case, the contractor did not perform as required, so the contract is terminated due to that failure. This label directly reflects that the termination stems from the contractor’s fault and nonperformance. While “for default” is a closely related idea, the formal term often emphasized in contracting practice and exams for this situation is “for cause.” Other options would describe different bases for ending a contract—termination for convenience is used when the government ends the contract for non-fault reasons, and the other terms aren’t standard bases for a nonperformance termination.

For Default