What costs can the Contractor include in their invoice for Services prior to termination?

The correct answer is based on the principle that the Contractor is entitled to compensation for work completed up to the point of termination, but not for future or unrendered services. Invoicing for reasonable costs for all services performed before termination ensures that the Contractor is reimbursed only for actual expenses incurred in delivering the services rendered.

This approach maintains fairness in the contractual agreement, as it focuses on the work that has already been completed and values the time and resources the Contractor has invested. It prevents the Contractor from inflating their invoices with projected profits or costs related to services that they have not yet delivered, which aligns with standard practices in contract law.

Consequently, previous costs and any incurred expenses up to termination are valid for inclusion in the invoice, while notions such as profit margins and projected future costs do not apply in this context, as they are speculative and do not accurately reflect the work completed prior to termination.