Termination For Convenience: It's All About 'Good Faith'

Law360, New York (November 2, 2010, 11:24 AM EDT) -- Termination for convenience provisions are standard clauses in construction contracts that generally allow one party to terminate a contract even in the absence of fault or breach by the other party, and without suffering the usual financial consequences of a breach.

Absent language imposing a good-faith requirement in the provision, can owners and general contractors really terminate another contracting party when it suits their needs or purpose? In short, the answer is yes, if the termination is in good faith and does not involve fraud....
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