Certified Public Procurement Officer (CPPO) Practice Test 2025 - Free CPPO Practice Questions and Study Guide

When a purchasing manager needs to cancel a term contract due to low usage, the most appropriate method is termination for convenience. This method allows the purchasing entity to terminate the contract for any reason, provided it is done in accordance with the terms outlined in the contract, including giving the required notice. It allows flexibility for the organization to discontinue a contract that no longer meets its needs without having to prove any fault by the contractor.

In the context of low usage, termination for convenience is ideal because it permits the purchasing manager to exit the contract without penalty or legal ramifications related to inadequate performance, which would not apply in this situation.

Other options do not fit this scenario as well. For example, termination for default would typically be used when the contractor has failed to deliver on their obligations. Issuing a show cause notice implies that the contractor was underperforming, which doesn't apply in cases of merely low usage. Issuing notice of suspension is typically a preliminary measure that allows for further evaluation or correction but does not directly address the complete cancellation of the contract. Therefore, termination for convenience is the right choice to address low usage effectively.