Premature Contract Termination
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Added on 2021-06-14
Premature Contract Termination
Added on 2021-06-14
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PREMATURE CONTRACT TERMINATION 1Premature Contract TerminationStudent’s NameInstitutional Affiliation
PREMATURE CONTRACT TERMINATION 2Premature Contract TerminationIntroductionTermination of construction contract happens when a valid and enforceable legally binding agreement is brought to an end either by becoming unmanageable as a result of unpredictable conditions at the time the contract was made or through one's action or both the parties' actions(Stannard & Capper, 2014). The termination at common law carried out by repudiating in a narrow sense where the repudiating party refuses to carry out the formal agreement or through a defective performance where the performance of a party utterly defectiveas to go to the commencements of the contract. Types of Contract TerminationThere are two broad categories of contract cancelation: project cancellation for cause and project cancellation for convenience. A termination of a cause can merely occur if one of the parties fails completely to live up to their contractual obligations(Sergeant & Wieliczko, 2014). For instance, a contractor can terminate their contract for the cause since the employer failed to honor valuation order within the duration agreed during the contracting. Similarly, the client canas well terminate a contract for cause if the contractor diligently and precisely fails to carry out the work in keeping with the timeline stated in the appendix of contract. The following are some of the commonly stated reasons for contract termination for cause: contractors failing to pay labors, vendors, suppliers, and sub-contractors; contractors failing to meet the project or diligently perform the duty. Besides, contract termination for cause may be due to poor workmanship resulting in defective or ineffective performance, both parties failing to abide by the laws and regulation, and failure to consistently follow risk management techniques (Greenhalgh, 2016).
PREMATURE CONTRACT TERMINATION 3However, a termination for convenience is a scenario where a contract is terminated when there is no contract breach made by the other party. This kind of termination is only legal when it is expressly written in the contract(Sergeant & Wieliczko, 2014). A termination for convenience clause tends to be fixed in contracts since it enables both parties to end their duties in a way that does not lead to litigation or harm of either party. According to Chappell & Joint Contracts Tribunal (2014), termination for convenience allows the contractor to collect any payments for completed work, as well as the employer having the ability to avoid paying damages for terminating a project. Therefore, under the cancelation for convenience, the employer can cancel the progress of a project for any reasons like political issues.General Causes of Premature Contract TerminationA contracted project is a legally binding arrangement between 2 or more people. Therefore, on the occasion of terminating a contract, its legality must be determined first(Sergeant & Wieliczko, 2014). A court of law cannot recognize an agreement unless there are mutual acceptance and consideration. The parties who are contracting can prematurely end a progressing project when it does not fulfil specific legal proceedings.Lack of Capacity and Inability to PerformA law court will only look at the legally binding duties of a person that does not capability. For instance, people with 18 years and above or those who are mentally incompetent will be considered to the capacity of contracting. Such kind of contractual responsibilities of a minor and court does not recognize it as a contract; however, contractual arrangements implemented by a grown up to a kid are enforceable in the court of law (Seeley, 1993). Noticeably, one is insane if he or she does not have the capability of understanding the contract. For example, in the construction industry, the capacity of both the contractor and the employer
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