Termination for Default

Termination for default refers to a legal process in which one party ends a contract because the other party has not fulfilled their obligations. This can happen in various scenarios, such as failing to deliver goods, not paying on time, or not meeting specific contract terms. When a contract is terminated for default, the party at fault may face penalties, and the non-breaching party can seek damages or pursue other remedies. This mechanism helps ensure that parties adhere to their commitments and provides a way to address failures in meeting contractual obligations.