top of page
Search

TERMINATION CLAUSES MUST BE STRICTLY COMPLIED WITH

  • Writer: George Marco
    George Marco
  • Mar 9, 2022
  • 1 min read

Updated: Mar 12, 2022

In October 2021, an Appellate Court in New York found that a general contractor breached a contract with its subcontractor when it failed to provide a contractual 10-day notice to cure period before terminating it and hiring another subcontractor to complete its work. East Empire Construction, Inc. v. Borough Construction Group LLC, 200 A.D.3d 1 (1st Dept. 2021).


The Court upheld the well settled rule that termination provisions in a contract must be strictly complied with and that only where a subcontractor unequivocally abandons a project or repudiates the agreement will strict compliance be waived.


Comment:


Failing to terminate a contractor according to the letter of the contract could prove a costly mistake and result in a wrongful termination. In such a scenario, not only may the offending party have to pay for damages but it also risks losing its rights to seek completion costs it would ordinarily have been entitled to under a proper termination. On the other hand, contractors who are terminated should determine whether their contractual rights were violated by a premature termination or an otherwise ineffective written notice.


About the author: George Marco is an attorney practicing in the field of construction law. He also holds a Bachelor of Science in Mechanical Engineering and was previously employed as a Project Manager for a public improvement contractor.


If you would like more information regarding this topic or any other related to construction law please contact George Marco at george@gmarcolaw.com or call (516) 464-2320.


Disclaimer: This article is for informational purposes only and not intended to serve as legal counsel.



 
 
 

Comments


Post: Blog2 Post

Subscribe Form

Thanks for submitting!

  • Facebook
  • LinkedIn

This website and its contents may be considered attorney advertising under the rules of certain jurisdictions. Any information on this site is for general informational purposes only, and does not and should not be considered legal advice.

Please consult with an attorney familiar with your particular legal issue.

©2022 by Marco Law PLLC. Proudly created with Wix.com

bottom of page