Share on LinkedInShare on LinkedIn

ARTICLE · 07 MARCH 2016

When mitigation becomes repudiation: the perils of terminating a building contract

Mitigation can easily be construed as repudiation, so careful consideration should be given when terminating a contract.

AustraliaReal Estate and Construction

In brief - Consider risk of mitigatory conduct and seek professional advice

A decision of the Appeal Panel of the Civil and Administrative Tribunal of New South Wales, delivered on 12 February 2016, is a timely reminder of how easily an act of mitigation can be construed as an act of repudiation. While the "one must mitigate one's loss" mantra is so ingrained in the minds of principals, contractors and practitioners alike, careful consideration should be given to how intentions are communicated when terminating a contract.

Principal seeks to terminate contract in residential building dispute

D&R Constructions (Aust) Pty Limited v Wesiak [2016] NSWCATAP 38 concerned a residential building dispute. The appellant, D&R Constructions (Aust) Pty Limited (Contractor) had entered into a building contract with the respondents, Leela and Bernard Wesiak (Principal) to carry out building works under a standard Master Builders Association style contract.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

See more popular content from