Termination for Default

“Termination for default” means the exercise of the Government’s right to completely or partially terminate a contract because of the contractor’s actual or anticipated failure to perform its contractual obligations.

Court Cases

EM Logging v. Department of Agriculture, 2014-1227 (Feb. 20, 2015)

The Federal Circuit reversed the Civilian Board of Contract Appeals, because the evidence did not support the Board's conclusion that the US Forest Service had properly terminated a timber sale contract for "flagrant disregard" of the terms of the contract. Evidence showed that the contractor had only four instances "technical non-compliance (route deviation, load limit violations, or delayed notifications) and these actions did not justify termination because termination for "flagrant disregard" must be "predicated on more than technical breaches of minor contract provisions or isolated breaches of material contract provisions which caused no damage."

The government must prove damage when terminating a contract for default.