Suspension and Termination Notices Flashcards
What is a suspension notice?
Parties to a contract have the right to suspend performance of any or all contractual obligations when a required payment of a notified sum has not been made.
Seven days notice must be given of the intention to suspend performance and the right ceases if the payment is made.
What provisions does the HGCRA 1996 make?
The right to be paid in interim, periodic or stage payments.
The right to be informed of the amount due, or any amounts to be withheld.
The right to suspend performance for non-payment.
Abolition of pay when paid
When may suspension be permitted?
Due to a breach of contract by the employer, the employer becoming insolvent, as a result of force majeure, or by agreement between the parties, for example if circumstances make proceeding with the works temporarily impossible.
What is a termination notice?
• If the one of the parties to a contract fails to perform as required by the contract, this may constitute a breach of contract. If the breach of contract is serious (a material breach), then the innocent party may also consider that it is discharged from any further obligations under the contract.
What is a repudiatory breach?
Where one party behaves in such a way as to indicate that it no longer intends to accept its obligations under the contract, this is considered to be a repudiatory beach (or fundamental breach), allowing the innocent party to terminate the contract and to sue for damages.
