Eric is the project manager of the NQQ Project and has hired the ZAS Corporation to complete part of the project work for Eric's organization. Due to a change request the ZAS Corporation is no longer

Question

Options

• AIt depends on what the outcome of a lawsuit will determine.
• BNo, the ZAS Corporation did not complete all of the work.
• CIt depends on what the termination clause of the contract stipulates.
• DYes, the ZAS Corporation did not choose to terminate the contract work.

• A
  8% (2)
• B
  4% (1)
• C
  83% (20)
• D
  4% (1)

Explanation

When a contract is terminated before completion - especially due to a change in project needs (termination for convenience) rather than vendor default - the obligations of both parties are governed by the termination clause in the contract. Most contracts include a termination for convenience clause that specifies how the vendor will be compensated for work completed and reasonable costs incurred up to the point of termination. Without reviewing the contract's termination clause, it cannot be determined whether ZAS Corporation is owed full or partial payment. The fact that ZAS did not complete all work (B) is not automatically a basis for non-payment, and the outcome should not require a lawsuit (A) if the contract addresses this scenario.

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