Termination for convenience clauses
There was a time when signing a construction contract meant the contractor had the right to complete the job and get paid the full price. But, over time, the idea that an owner could terminate a contract for reasons having nothing to do with the contractor's performance became more and more pop...
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Veröffentlicht in: | Contractor 2012-05, Vol.59 (5), p.32 |
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Format: | Artikel |
Sprache: | eng |
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Online-Zugang: | Volltext |
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Zusammenfassung: | There was a time when signing a construction contract meant the contractor had the right to complete the job and get paid the full price. But, over time, the idea that an owner could terminate a contract for reasons having nothing to do with the contractor's performance became more and more popular. This is the concept of Termination for Convenience (T for C) clause. By inserting this clause into a written contract, an owner avoided being sued for breach of contract if he changed his mind and wanted to pull the plug on a project even without any fault on the part of the contractor. This concept first appeared in connection with federal government projects. |
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ISSN: | 0897-7135 |