Termination
49 U.S.C. Part 18
FTA Circular 4220,1F
a. Termination for Convenience (General Provision) Nashua Transit System, may terminate this
contract, in whole or in part. at any time by written notice to the Contractor when it is in the
Government's best interest. The Contractor shall be paid its costs, including contract close-out costs,
and profit on work performed up to the time of termination. The Contractor shail promptly submit its
termination claim to Nashua Transit System, to be paid to the Contractor. Ifthe Contractor has any
property in its possession belonging to the Nashua Transit System, the Contractor will account for the
same, and dispose of it in the manner the Nashua Transit System directs.
b. Termination for Default |Breach or Cause] (General Provision) If the Contractor does not deliver
supplies in accordance with the contract delivery schedule. or, if the contract Is for services, the
Contractor fails to perform in the manner called for in the contract, or if the Contractor fails to comply
with any other provisions of the contract, Nashua Transit System, may terminate this contract for
default. Termination shall be effected by serving a notice of termination on the contractor setting forth
the manner in which the Contractor is in default. The contractor will only be paid the contract price for
supplies delivered and accepted. or services performed in accordance with the manner of performance
set forth in the contract.
If it is later determined by Nashua Transit System, that the Contractor had an excusable reason for not
performing, such as a strike, fire, or flood, events which are not the fault of or are beyond the contro! of
the Contractor, Nashua Transit System, after setting up a new delivery of performance schedule, may
allow the Contractor to continue work, or treat the termination as a termination for convenience.
c, Opportunity to Cure (General Provision) Nashua Transit System, in its sole discretion may, in the
case of a termination for breach or default, allow the Contractor [an appropriately short period of time]
in which to cure the defect. In such case, the notice of termination will state the time period in which
cure is permitted and other appropriate conditions
If Contractor fails to remedy to Nashua Transit System’s satisfaction the breach or default of any of the
terms, covenants, or conditions of this Contract within [ten (10) days] after receipt by Contractor of
written notice from Nashua Transit System, setting forth the nature of said breach or default. Nashua
Transit System, shall have the right to terminate the Contract without any further obligation to
Contractor. Any such termination for default shall not in any way operate to preclude Nashua Transit
System, from also pursuing all available remedies against Contractor and its sureties for said breach or
default.
d. Waiver of Remedies for any Breach In the event that Nashua Transit System, elects to waive its
remedies for any breach by Contractor of any covenant, term or condition of this Contract. such waiver
by Nashua Transit System, shal! not limit Nashua Transit System, remedies for any succeeding breach
of that or of any other term, covenant, or condition of this Contract.
e. Termination for Default (Supplies and Service) If the Contractor fails to deliver supplies or to
perform the services within the time specified in this contract or any extension or if the Contractor fails
ta comply with any other provisions of this contract, Nashua Transit System, may terminate this
contract for default. Nashua Transit System, shall terminate by delivering to the Contractor a Notice of
Termination specifying the nature of the default. The Contractor will only be paid the contract price for
supplies delivered and accepted, or services performed in accordance with the manner or performance
set forth in this contract,
if, after termination for failure to fulfill contract obligations, it is determined that the Contractor was
not in default, the rights and obligations of the parties shall be the same as if the termination had been
issued for the convenience of the Recipient.
