{"data":{"id":"us/48-cfr-49.109-2","jurisdiction":"us","citation":"48 CFR 49.109-2","heading":"49.109-2 Reservations.","body":"(a) The TCO shall—\n(1) Reserve in the settlement agreement any rights or demands of the parties that are excepted from the settlement;\n(2) Ensure that the wording of the reservation does not create any rights for the parties beyond those in existence before execution of the settlement agreement;\n(3) Mark each applicable settlement agreement with “This settlement agreement contains a reservation” and retain the contract file until the reservation is removed;\n(4) Ensure that sufficient funds are retained to cover complete settlement of the reserved items; and\n(5) At the appropriate time, prepare a separate settlement of reserved items and include it in a separate settlement agreement.\n(b) A recommended format for settlement of reservations appears in 49.603-9.","path":["Title 48—Federal Acquisition Regulations System","CHAPTER 1—FEDERAL ACQUISITION REGULATION","SUBCHAPTER G—CONTRACT MANAGEMENT","PART 49—TERMINATION OF CONTRACTS","Subpart 49.1—General Principles"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-48.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:26:29Z","sha256":"7fc084ad3879e255e10a36c450787e405fefa8d1e518e47e28020b1e54d5ce21","source_id":"us-cfr","stale":true,"prev":"us/48-cfr-49.109-1","next":"us/48-cfr-49.109-3"},"notice":"GroundRules: Original legal text. Not legal advice."}