The one-dimensional Two-Fluid concept uses an area-average approach to simplify the time and phase-averaged Two-Fluid conservation equations, making it more suitable for addressing difficulties at an industrial scale. Nevertheless, the mathematical framework has inherent weaknesses due to the loss of details throughout the averaging procedures. This limitation makes the conventional model inappropriate for some flow regimes, where short-wavelength perturbations experience uncontrolled amplification, leading to solutions that need to be physically accurate. The critical factor in resolving this problem is the integration of closure relations. These relationships play a crucial function in reintroducing essential physical characteristics, thus correcting the loss that occurs during averaging and guaranteeing the stability of the model. To improve the accuracy of predictions, it is essential to assess the stability and grid dependence of one-dimensional formulations, which are particularly affected by closure relations and numerical schemes. The current research presented in the text focuses on improving the well-posedness of the TFM, specifically within the TRACE code, which is widely utilized for nuclear reactor safety assessments. Incorporating a bubble collision model in the momentum equations is demonstrated to enhance the TFM's resilience, especially in scenarios with high void fractions where conventional TFMs may face challenges. The analysis presents a linear stability analysis performed for the transient one-dimensional Two-Fluid Model of system code TRACE within the framework of vertically dispersed flows. The main emphasis is on evaluating the stability characteristics of the model while also acknowledging its susceptibility to closure relations and numerical techniques.