Risk-of-Loss Provisions in War-Zone Service Contracts: Accrual, Affirmative Defenses, and Termination-for-Convenience Claims

The Fourteenth Court of Appeals addressed when breach-of-contract claims accrue under termination-for-convenience clauses in war-operations dining services contracts, holding that accrual occurred when the general contractor affirmatively denied termination costs rather than upon mere termination or implicit refusal through non-payment. The court enforced a risk-of-loss provision barring recovery for equipment abandoned during emergency military evacuations, distinguishing it from termination-for-convenience remedies and holding that offset claims constitute affirmative defenses not subject to limitations periods.