Legal Term
Termination for Convenience in Government Grant Contracts
Legal Definition
A contractual provision in government grant agreements that authorizes the granting agency to unilaterally terminate the award without demonstrating fault or breach by the grantee, typically upon providing written notice and often subject to specific cost settlement procedures under applicable regulations such as the Uniform Guidance (2 CFR 200).
In Plain English
This means the government can cancel your grant contract at any time, even if you're following all the rules, as long as it gives proper notice and may only pay for certain costs you already incurred.
Example in a Contract
TERMINATION FOR CONVENIENCE. The Federal Agency reserves the right to terminate this grant award, in whole or in part, at any time by delivering written notice to the Recipient. Termination shall be effective as of the date specified in the notice or, if no date is specified, upon receipt. Upon termination, the Recipient must cease all activities under this award and submit a final financial report. The Agency shall be liable only for allowable costs incurred prior to the effective date of termination that are non-cancelable, in accordance with 2 CFR 200.340 and the terms of this award.
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