Courts Uphold Good Faith Use of "Termination for Convenience"
Recently, the Maryland Court of Appeals issued an important ruling on the validity of termination for convenience clauses in private construction contracts.
The Impact
Provided that the terminating party acts reasonably, a termination for convenience clause is a permissible and effective tool for allocating risk. Accordingly, if private parties wish to allocate their economic loss by using a termination for convenience clause, they may now do so in Maryland, as long as they act in good faith.
- « Previous Page
- 1
- 2
- Next Page »
