Court Rules That Termination For Convenience May Not Be Enforceable If It Is For "Convenience" of Bid Shopping
A Maryland Court of Appeals in the case of Questar Builders, Inc. v. C.B. Flooring, LLC, 2009 MD.LEXIS627, considered the issue of whether private parties may terminate a contract for convenience whether a Termination for Convenience clause makes a contract voidable. The Court held that a Termination for Convenience clause may be enforceable so long as it is used in a manner to mitigate genuine risk. The Court held that Termination for Convenience clause may make a contract voidable if the party uses it for the mere purpose of shopping for additional bids.
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This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice. Seek a competent attorney for advice on any legal matter.
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