Introduction In government contracting, the government as the buyer enters into mutually and legally binding relationships with a second party, which is the seller. The seller is to deliver the supplies while the buyer pays for those services. This includes all written commitments that obligate the government to expend allocated funds in large contracting engagements. In the management of contracts, situations arise where these agreements may require termination between the contracting government agents and contractors in order to settle arising disputes. Generally, the government will terminate a contract either based on a default arising from the contractor or by the convenience of the government(Breger,et al, 2001). Termination for Default Terminating a contract by default is the exercise of the government’s right because of the contractor’s actual or anticipated failure to perform the set contractual obligations. The right to terminate a contract where it has been determined that the reasons are not excusable the government acts to terminate the contractors just like for its convenience purposes.