Owner's Wrongful Termination of Construction Contract
Synthèse Legislator
Généré par l'IAA construction company entered into a contract to perform work on a building, and the owner subsequently terminated the contract, alleging poor performance and seeking damages for the cost of completing the work and repairing defects; the lower court, finding the termination justified by the contractor's significant failures to adhere to the plans and specifications, awarded damages, but the high court quashed this decision, reasoning that while a right to terminate exists for serious breach, the owner had failed to formally place the contractor in default through a notice to remedy the defects before unilaterally terminating the contract, which was a necessary prerequisite under the terms of the agreement.
Regeste Legislator
Généré par l'IAOwner's Wrongful Termination of Construction Contract: A construction company entered into a contract to perform work on a building, and the owner subsequently terminated the contract, alleging poor performance and seeking damages for the cost of completing the work and repairing defects; the lower court, finding the termination justified by the contractor's significant failures to adhere to the plans and specifications, awarded damages, but the high court quashed this decision, reasoning that while a right to terminate exists for serious breach, the owner had failed to formally place the contractor in default through a notice to remedy the defects before unilaterally terminating the contract, which was a necessary prerequisite under the terms of the agreement.