QuestionQ113

VerifiedLaw, Ethics, and Security Compliance Management

Eric is the project manager for the NQQ Project and has engaged the ZAS Corporation to perform part of the project work for Eric's organization. Because of a change request, the ZAS Corporation is no longer required on the project, despite having completed nearly all of the project work. Is Eric's organization liable to pay the ZAS Corporation for the work it has completed so far on the project?

Explanation

A contract’s termination clause specifies the parties’ rights and obligations when work is ended early, including whether termination for convenience is permitted and what payment, costs, or termination fees are due for completed work. Liability therefore depends on the applicable contractual termination terms.

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