Determination, Termination & Insolvency

Question 1

Ways to end a contract (contract law)

Answer 1

Discharge (when things do to plan)

Repudiation leading to termination (employment ends, obligations continue)

Question 2

Ways to end a contract (common law)

Answer 2

Repudiation leading to determination (employment ends, obligations continue)

Rescission (emolument and obligations end)

Question 3

Causes of discharge

Answer 3

Performance

Agreement

Frustration (rare)

Breach

Question 4

Situations requiring termination

Answer 4

One party’s performance is unsatisfactory in critical regards

One party refusing to perform

One party has become or is about to become insolvent

Question 5

Difference between conditions and terms & warranties

Answer 5

Conditions are terms that go to the root of the contract and if breaches create a right to terminate for the injured party

Terms and warranties are normal promises that if breaches result in damages

Question 6

Repudiating breach examples (client)

Answer 6

Failure to grant possession of site

Non-payment of sums due

Withholding certificates

Hindering contractor

Question 7

Repudiating breach examples (contractor)

Answer 7

Abandonment or suspension

Defective work

Delay (failing to meet a Key Date or Completion Date without providing notice)

Question 8

Termination process NEC4

Answer 8

Party communicates intention to terminate to PM and other party stating reasons

PM issues termination certificate promptly if reason in contract

Question 9

What is clause 91.1

Answer 9

List of reasons for termination

These are used alongside the termination table in clause 90.2 to apply terminating party, reason, procedure (P1-P4) and amount due methods (A1-A4)