Which statement contrasts termination for convenience with termination for default?

• A. Termination for convenience is used when the contractor fails to perform.
• B. Termination for default is used when the government's convenience dictates ending the contract.
• C. Termination for default involves fault in performance; termination for convenience is without contractor fault.
• D. Both terminations require payment of liquidated damages.

Answer: (C)

Termination for default is a remedy used when the contractor fails to perform or meet contract requirements, so it is fault-based. Termination for convenience, on the other hand, is the government's option to end the contract for its own needs, and it can do so without any fault by the contractor. That direct contrast—fault in performance versus no contractor fault—is what the correct statement expresses. The other options describe situations that aren’t accurate (for example, convenience isn’t triggered by contractor failure, and default termination isn’t dictated by the government’s convenience). Also, liquidated damages aren’t a universal requirement for both terminations.