Building Owner's Unilateral Termination of Construction Contract and Damages for Lost Profit
Synthèse Legislator
Généré par l'IAA building owner, who had entered into a contract with a contractor for construction work, terminated the contract unilaterally after the contractor initiated work, leading the contractor to sue for damages based on breach of contract. The court upheld the lower court's decision, reasoning that while a contract for work remains subject to the general principle allowing unilateral termination of a mandate or agency contract by the principal, the terminating party must compensate the contractor for the value of the work executed and the expenses incurred, as well as any lost profit on the unexecuted portion of the contract, unless the termination resulted from the contractor's own fault.
Regeste Legislator
Généré par l'IABuilding Owner's Unilateral Termination of Construction Contract and Damages for Lost Profit: The court upheld the lower court's decision, reasoning that while a contract for work remains subject to the general principle allowing unilateral termination of a mandate or agency contract by the principal, the terminating party must compensate the contractor for the value of the work executed and the expenses incurred, as well as any lost profit on the unexecuted portion of the contract, unless the termination resulted from the contractor's own fault.