Question

If a contractor is producing missiles for the Navy, and the contractor fails to deliver them on time, the Navy has the right to: [Contrast the difference between termination for convenience, termination for default, and termination for cause.]

A. Terminate the contract for default
B. Terminate the contract for convenience
C. Terminate the contract for cause
D. All of the answers are correct

Answer 1

The correct answer is letter "A": Terminate the contract for default.

Step-by-step explanation:

A termination for default takes place when one party on a contract is not able to fulfill the agreement conditions. The party who failed to fulfill the contract obligations can be sued and could be found liable for all the damages caused as a result of the breach of the agreement.