Termination by Contractor for Cause occurs under which condition?

Termination by Contractor for Cause occurs under which condition?

• A. Contractor fault
• B. Repeated failure of owner to fulfill obligations
• C. Owner requests change of scope
• D. Weather delays

Answer: (B)

Termination for cause happens when the other party breaches the contract by failing to meet its essential obligations. In this scenario, repeated failures by the owner to fulfill obligations—such as not paying on time, not providing required information, or not granting access or approvals—constitute a material breach. After the contractor gives notice and a defined cure period, if the owner still does not remedy the failures, the contractor may terminate for cause. The other options don’t fit as well: a contractor's own fault would typically be a reason for the owner to terminate for cause, not the contractor; a change of scope requested by the owner isn’t a termination by the contractor; and weather delays are usually considered a disruptor or force majeure issue, not a breach that justifies termination for cause.

Termination for cause happens when the other party breaches the contract by failing to meet its essential obligations. In this scenario, repeated failures by the owner to fulfill obligations—such as not paying on time, not providing required information, or not granting access or approvals—constitute a material breach. After the contractor gives notice and a defined cure period, if the owner still does not remedy the failures, the contractor may terminate for cause.

The other options don’t fit as well: a contractor's own fault would typically be a reason for the owner to terminate for cause, not the contractor; a change of scope requested by the owner isn’t a termination by the contractor; and weather delays are usually considered a disruptor or force majeure issue, not a breach that justifies termination for cause.