Why would a partner terminate a contract "for convenience?"

The concept of terminating contracts "for convenience" had been brought up on this blog in the past. As was mentioned previously, this right is automatically afforded to government agencies (private organizations can only terminate a contract for convenience if that privilege is afforded to them in a contract's terms). The question then becomes under what scenarios might a contractual partner cite for ending your agreement in this manner, and what (if any) expenses you can recover in this scenario. 

The Congressional Research Service has listed several common scenarios in which government agencies end contracts for convenience. One is when an agency or organization no longer needs the goods or services that you offer. It may be that its needs were temporary, or it found a method to provide them in-house. Another is if questions arise regarding your company's ability to continue to provide the contracted service, or the propriety in continuing to work with you. Say that you run into issues with your professional licensing. Your government partner may decide to cease working with you until you get the matter resolved. 

Another common reason for a government partner to end its contract with you for its own convenience is a rift in your professional relationship. It might ask you to restructure the terms of your agreement, to which you may refuse (which you have every right to). That may, however, strain your partnership and cause the agency to reconsider your agreement. 

If your contract is terminated for convenience, you are entitled to collect payment for any work already done, as well as compensation for the expenses associated with ending your service. You cannot collect damages for breach of contract unless you are able to show that your partner never intended to fulfill the terms of your agreement. 

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