---
kind: "section"
citation: "10 U.S.C. § 2872b"
title: "10"
title_heading: "Armed Forces"
number: "2872b"
heading: "Treatment of breach of contract"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/10/2872b"
units:
  - "Subtitle A — General Military Law"
  - "Part IV — Service, Supply, and Property"
  - "Chapter 169 — Military Construction and Military Family Housing"
  - "Subchapter IV — Alternative Authority for Acquisition and Improvement of Military Housing"
---

# §2872b. Treatment of breach of contract

- (a) **Response to Material Breach.—** In the case of a material breach of [contract](/usc/10/2871.md?p=4) under this subchapter by a party to the [contract](/usc/10/2871.md?p=4), the [Secretary concerned](/usc/10/2801.md?p=c-5) shall use the authorities available to the [Secretary](/usc/10/4951.md?p=3), including withholding amounts to be paid under the [contract](/usc/10/2871.md?p=4), to encourage the party to cure the breach.
- (b) **Rescinding of Contract.—** If a material breach of the [contract](/usc/10/2871.md?p=4) is not cured in a timely manner, as determined by the [Secretary concerned](/usc/10/2801.md?p=c-5), the [Secretary](/usc/10/4951.md?p=3) may—
  - (1) rescind the [contract](/usc/10/2871.md?p=4) pursuant to the terms of the [contract](/usc/10/2871.md?p=4); and
  - (2) prohibit the offending party from entering into a new [contract](/usc/10/2871.md?p=4) or undertaking expansions of other existing [contracts](/usc/10/2871.md?p=4), or both, with the [Secretary](/usc/10/4951.md?p=3) under this subchapter.

## Source credit

(Added Pub. L. 116–92, div. B, title XXX, § 3033(a), Dec. 20, 2019, 133 Stat. 1936.)