Running Head: The FAR and Contract Provisions for Protection 1
The FAR and Contract Provisions for Protection
Strayer University
Professor Scott Levasseur
LEG 440
March , 2016
The FAR and Contract Provisions for Protection 2
The FAR and Contract Provisions for Protection
Importance of Standard Default Clause
In contract formation, parties often include standard default clauses in their agreement
mainly to offer protection and secure their rights. These clauses describe to the parties what
would constitute a default of the agreement. They often cover defaults in the payment, contract
performance and maintenance or enforcement of intellectual property in relation to the contract.
The standard default clause offers a platform through which the federal government can end a
contract if it deems fit that the initial contract agreement was breached. The Department of
Energy uses standard default clauses that are slightly similar to termination clauses in market
commercial contracts. The standard default clause enables the Department of Energy to terminate
the contract when the contractor materially breaches the contract. This breach can be a failure to
