All contracts should include a provision that allows the acquiring entity to terminate a contract for convenience. Such a clause incorporates into the contract the doctrine of executive necessity that recognises governments may need to break contracts because of a change of policy or other similar circumstances. This means that the terminating party does not need to give a reason for the termination and there does not need to have been a default by other party. These clauses usually specify the type and amount of damages that will be payable by the party terminating the contract to the other party. To assist in giving effect to the need for all procurements to achieve value for money, it is good practice for all contracts to specify an end date. In contracts with contract extension options, the end date will generally be a date beyond which any contract extension options can no longer be exercised. | All contracts should include a provision that allows the acquiring entity to terminate a contract for convenience. |