Termination of contractor when time is of the essence in construction

The phrase ‘Time is of the essence’ in a contract shows that time for performance is an essential condition of the contract. If a party fails to perform his obligation timely as stipulated the other party may either treat the contract as repudiated or terminate the contract. Construction contracts n...

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Bibliographic Details
Main Author:	Hajijan, Hilmi
Format:	Thesis
Language:	English
Published:	2011
Subjects:	TH Building construction
Online Access:	http://eprints.utm.my/id/eprint/36980/1/HilmiHajijanMFAB2011.pdf
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id	my-utm-ep.36980
record_format	uketd_dc
spelling	my-utm-ep.369802018-05-27T08:15:41Z Termination of contractor when time is of the essence in construction 2011-01 Hajijan, Hilmi TH Building construction The phrase ‘Time is of the essence’ in a contract shows that time for performance is an essential condition of the contract. If a party fails to perform his obligation timely as stipulated the other party may either treat the contract as repudiated or terminate the contract. Construction contracts normally contain dates for commencement and completion that make time is of the essence of the contracts. In addition they also contain extension of time and liquidated damages clauses. The issue is then whether or not the employers may terminate the contracts in the event that the contractors fail to complete their works within the time stipulated. The methodology adopted in this research is case law based. There is no limitation as for the court cases referred to in terms of type of projects as long as they relate to contractor’s breach of time for performance and the employer’s right to terminate the contract. The cases were extracted from the Malayan Law Journal using the Lexi-Nexis database. Six related cases were shortlisted and analysed. The findings show that an employer may validly terminate the contract if he can show that time remains the essence of the contract at the time the termination is exercised and he complies with the conditions and procedures as stipulated in the contract 2011-01 Thesis http://eprints.utm.my/id/eprint/36980/ http://eprints.utm.my/id/eprint/36980/1/HilmiHajijanMFAB2011.pdf application/pdf en public masters Universiti Teknologi Malaysia, Faculty of Built Environment Faculty of Built Environment
institution	Universiti Teknologi Malaysia
collection	UTM Institutional Repository
language	English
topic	TH Building construction
spellingShingle	TH Building construction Hajijan, Hilmi Termination of contractor when time is of the essence in construction
description	The phrase ‘Time is of the essence’ in a contract shows that time for performance is an essential condition of the contract. If a party fails to perform his obligation timely as stipulated the other party may either treat the contract as repudiated or terminate the contract. Construction contracts normally contain dates for commencement and completion that make time is of the essence of the contracts. In addition they also contain extension of time and liquidated damages clauses. The issue is then whether or not the employers may terminate the contracts in the event that the contractors fail to complete their works within the time stipulated. The methodology adopted in this research is case law based. There is no limitation as for the court cases referred to in terms of type of projects as long as they relate to contractor’s breach of time for performance and the employer’s right to terminate the contract. The cases were extracted from the Malayan Law Journal using the Lexi-Nexis database. Six related cases were shortlisted and analysed. The findings show that an employer may validly terminate the contract if he can show that time remains the essence of the contract at the time the termination is exercised and he complies with the conditions and procedures as stipulated in the contract
format	Thesis
qualification_level	Master's degree
author	Hajijan, Hilmi
author_facet	Hajijan, Hilmi
author_sort	Hajijan, Hilmi
title	Termination of contractor when time is of the essence in construction
title_short	Termination of contractor when time is of the essence in construction
title_full	Termination of contractor when time is of the essence in construction
title_fullStr	Termination of contractor when time is of the essence in construction
title_full_unstemmed	Termination of contractor when time is of the essence in construction
title_sort	termination of contractor when time is of the essence in construction
granting_institution	Universiti Teknologi Malaysia, Faculty of Built Environment
granting_department	Faculty of Built Environment
publishDate	2011
url	http://eprints.utm.my/id/eprint/36980/1/HilmiHajijanMFAB2011.pdf
_version_	1747816487078330368

Termination of contractor when time is of the essence in construction

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