![]() ![]() Recent Cases – Failure to Issue and Inadequate Default Notices If the issues persist then default notices become part of the necessary contractual requirements for a valid termination. The primary aim of a contractual notice regime is to provide a party in breach the opportunity to remedy the notified breach and to avoid termination. The default notice requires the party receiving it, within a stated amount of time, to take steps to remedy the identified issues on a project and / or to explain why the party is not, or is no longer, in breach of contract. ![]() A default notice alerts a party to the reasons why the other party believes that the party is in breach of contract. ![]() Many contracts require a “default” notice before a termination notice is issued. Recent case law in the UK and Australia serves as a timely reminder that a valid or invalid termination can start with the contractual “default” notice. However, if exercising the right to terminate is not carried out in accordance with the contractual notice requirements then a party risks invalidly terminating the contract, and exposing itself to a wrongful termination action. The right to terminate a construction contract for reasons such as poor performance is a crucial contractual right. ![]()
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