Contractor Cancels JBCC Contract

Introduction

In the JBCC cancellation clause there is a provision to the effect that neither the employer nor the contractor can cancel the contract if at the time the party wishing to cancel is itself in breach of a material term of the contract.

The old BIFSA White Form Contract had a similar provision which was the subject of judicial scrutiny in a court case which gave useful guidance on the practical effect of that provision. Unfortunately the case is of no help with the JBCC clause due to the wording being very different.

In June 2011 the Supreme Court of Appeal delivered judgment in a case¹ in which the court had to consider amongst other things the provision in the JBCC contract.