What is the term for the Government's contractual right to terminate a contract due to a contractor's failure to perform?

The term for the Government's contractual right to terminate a contract due to a contractor's failure to perform is "Termination for Default." This terminology specifically refers to situations where the contractor does not fulfill their contractual obligations, whether it be through poor performance, failure to deliver on time, or any other breach of contract terms.

Legal frameworks governing federal contracts, such as the Federal Acquisition Regulation (FAR), outline the circumstances and procedures for Termination for Default. This ensures that the government has a mechanism to address non-performance and protect its interests when a contractor is unable to meet the agreed-upon terms. It is a significant provision that enables risk management within government contracting.

In contrast, other terms listed either do not accurately capture the specific nature of the termination process or concern different contexts of contract management. For instance, "Termination for Cause" often refers to a broader set of reasons when an entity can terminate a contract, while "Contractual Right of Termination" is too vague and does not specify the failure aspect. "Cancellation for Breach" might imply termination due to a breach but is not the standardized phrasing used in governmental contexts.