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.