Termination

Question 1

Under Common Law when can a contract be terminated

Answer 1

1. When one party has no clear intention of performing their obligations
2. When one party may be guilty of a serious breach that is treated as having no intention of performing their obligations

Question 2

what are contract breaches also known as

Answer 2

Repudiatory Breach

Question 3

After a breach, what can the innocent party do

Answer 3

1. ‘Affirm’ the contract and hold the other party to their obligations, whilst claiming damages.
2. Bring the contract to a close – termination

Question 4

What is a Contract rescinding/rescission?

Answer 4

The undoing of termination due to misrepresentation, fraud, or undue influence.

Question 5

What is Frustration?

Answer 5

Termination because the contract cannot be performed at all. Out of control of both parties

Question 6

What is Quantum Meruit?

Answer 6

recovered damages through assets or payments etc - common law.

Question 7

What can justify termination in a contract? (Client)

Answer 7

• Failure to give possession of the site
• Non payment of sums due – general principle of law
• Withholding of certifications
• Hindrance of the contractor

Question 8

What can justify termination in a contract? (Contractor)

Answer 8

• Abandonment or suspension of the work
• Defective work – only very serious defects that affect ‘substantial performance’
• Delay – common law – it must be found that the contractor’s intention is not bound to the contract or if the completion time is of fundamental importance – i.e ‘Time is of the essence’
• Miscellaneous – court may justify the breach of provisions like performance bond etc.