We all know that breaking up is hard to do, but sometimes you just have to go your own way.
Two lawyers from Vancouver-based SHK Law Corporation, principal Seema Lal and associate counsel Marc MacEwing, discussed Contract Terminations — Claims and Remedies at Vancouver Buildex 2018, which took place Feb. 14 and 15 at the Vancouver Convention Centre West.
“Our presentation is for owners, contractors and subcontractors and covers different kinds of contracts, including agreements with design professionals,” said MacEwing.
A presentation on contract terminations and remedies is always relevant because contracts are being terminated all the time, he added.
“It’s a fact of life in the construction world,” said MacEwing. “Any contract has the potential for an early break-up.”
Attendees didn’t need a law degree in order to follow the presentation.
“We discuss basic principles of contract termination that are straightforward, but that aren’t always complied with in a straightforward fashion,” MacEwing said.
The presentation provided an overview of Canadian law dealing with the termination of contracts.
Lal and MacEwing summarized the risks associated with wrongfully terminating a contract and discussed the remedies available, including builders’ liens.
MacEwing discussed the right way and wrong way to terminate a contract, whether you’re a contractor or an owner or sub, and what the typical grounds are for one party to claim default on a contract.
Lal highlighted the repercussions and remedies for proper and improper termination as well as practical alternatives to termination.
After discussing what the best practices are for both termination and the termination’s remedies, the presentation was followed by a 10-minute question-and-answer period.
“Termination of a contract is as important a legal step as entering into a contract in the first place and it must be done right,” said MacEwing.
Before you terminate a contract, you need to carefully assess the circumstances and ask yourself if the termination is justified, said MacEwing.
If it is, then if the contract you signed has a termination provision in it, it’s relatively easy to proceed.
“Standard form contract documents have termination provisions in them and instructions on how to carry them out,” MacEwing said.
In some situations, there are clear and obvious grounds for terminating, but there are also plenty of grey areas, said Lal.
“It’s always prudent to get some advice if you’re terminating a contract,” she said. “It could keep you from making a potentially serious and costly mistake.”
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