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FAR and DFARS › FAR Part 49: Termination of Contracts › Subpart 49.1

FAR 49.100 Scope of subpart.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section explains what the termination subpart covers. It describes the contracting officer's authority to terminate contracts for convenience or default, the duties of both parties after a termination notice, and the procedures for settling terminated contracts. It matters because it tells contractors where the rules for ending a contract early are located.

Applies to: Government contracts and the contractors holding them

Key terms: terminate contracts in whole or in part · convenience of the Government · default · notice of termination · settlement

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) This subpart deals with—

(1) The authority and responsibility of contracting officers to terminate contracts in whole or in part for the convenience of the Government or for default;

(2) Duties of the contractor and the contracting officer after issuance of the notice of termination;

(3) General procedures for the settlement of terminated contracts; and

(4) Settlement agreements.

(b) Additional principles applicable to the termination for convenience and settlement of fixed-price and cost-reimbursement contracts are included in subparts 49.2 and 49.3. Additional principles applicable to the termination of contracts for default are included in subpart 49.4.

← 49.002 Applicability. · 49.101 Authorities and responsibilities. →

Rule changes for FAR Part 49

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 49.100 Scope of subpart · SpendQuery