The following Construction practice note produced in partnership with DAC Beachcroft provides comprehensive and up to date legal information covering:
A construction contract may be discharged, terminated or determined in a number ways. These principally include:
as a result of a misrepresentation/fraud (see Practice Note: Misrepresentation—rescission as a remedy)
frustration (see Practice Note: Discharge by frustration)
at common law for 'repudiatory' breach of contract ('repudiation'), or
pursuant to a contractual power to terminate the contract, for example:
for breach of contract
This Practice Note looks at termination of a construction contract at common law for repudiatory breach, and termination pursuant to a contractual power either for breach or at will. For guidance on termination on insolvency, see Practice Note: Termination on insolvency in construction contracts.
In relation to consultant appointments, see also Practice Note: Termination of a consultant's appointment.
Where one party has committed a 'repudiatory' breach of contract, the innocent party may elect to either:
treat the contract as continuing but claim damages as a consequence of the breach of contract complained ('affirm' the contract), or
rescind the contract and bring the contract to an end
This Practice Note considers repudiation in the context of construction contracts. For more on repudiation generally, see Practice Note: Repudiation.
Poor performance of the contract does not automatically amount to a repudiatory breach of contract. In BSkyB v HP Enterprise, it was held that the test for
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