Application of good faith as necessary limits in exercising the termination for convenience clause

The right of the contracting party to terminate a contract for convenience is not a common feature in any jurisdictions. It is now a settled law that the exercising of the termination for convenience clause is valid, provided that the contractor is given consideration for his performance under the c...

Full description

Saved in:

Bibliographic Details
Main Author:	Nik Abdullah, Nik Abdul Hafiz
Format:	Thesis
Language:	English
Published:	2015
Subjects:	TH Building construction
Online Access:	http://eprints.utm.my/id/eprint/50786/25/NikAbdulHafizNikAbdullahMFAB2015.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-utm-ep.50786
record_format	uketd_dc
spelling	my-utm-ep.507862017-06-15T00:54:01Z Application of good faith as necessary limits in exercising the termination for convenience clause 2015-01 Nik Abdullah, Nik Abdul Hafiz TH Building construction The right of the contracting party to terminate a contract for convenience is not a common feature in any jurisdictions. It is now a settled law that the exercising of the termination for convenience clause is valid, provided that the contractor is given consideration for his performance under the contracts. Besides, there is an important qualification on this right which is that the employer must terminate for convenience in accordance with an implied duty of good faith. Thus, the objective of this study is to determine the necessity of “good faith” on the part of a terminating party when exercising his right to terminate a contract under “termination for convenience” clause. The research methodology undertaken is by documentary analysis of law cases reported in law journals. The review of the cases are identified from three jurisdictions; United States, Australia and United Kingdom. The findings of the analysis are: first, an employer is entitled to terminate a contract for convenience purposes but it depends on whether a term of good faith is implied into the contract. Second, the duty of good faith is indeed subject to any local law prohibitions. Third, in the USA, it is generally accepted that an implied good faith is necessary as a limit to exercise termination for convenience clause. Forth, the United Kingdom and Australia are in the same position that the employer may terminate the contract ‘in its sole discretion’ or ‘at any time and for any reason’ will not be subject to an implied term of good faith. The lessons to be learnt from this review of cases law is that the importance to check our terms and conditions whether the contract provisions a right to terminate for convenience and whether good faith clauses is applied as limits. In circumstances where we may wish to rely on good faith obligations, such clauses need to be specific. 2015-01 Thesis http://eprints.utm.my/id/eprint/50786/ http://eprints.utm.my/id/eprint/50786/25/NikAbdulHafizNikAbdullahMFAB2015.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 Nik Abdullah, Nik Abdul Hafiz Application of good faith as necessary limits in exercising the termination for convenience clause
description	The right of the contracting party to terminate a contract for convenience is not a common feature in any jurisdictions. It is now a settled law that the exercising of the termination for convenience clause is valid, provided that the contractor is given consideration for his performance under the contracts. Besides, there is an important qualification on this right which is that the employer must terminate for convenience in accordance with an implied duty of good faith. Thus, the objective of this study is to determine the necessity of “good faith” on the part of a terminating party when exercising his right to terminate a contract under “termination for convenience” clause. The research methodology undertaken is by documentary analysis of law cases reported in law journals. The review of the cases are identified from three jurisdictions; United States, Australia and United Kingdom. The findings of the analysis are: first, an employer is entitled to terminate a contract for convenience purposes but it depends on whether a term of good faith is implied into the contract. Second, the duty of good faith is indeed subject to any local law prohibitions. Third, in the USA, it is generally accepted that an implied good faith is necessary as a limit to exercise termination for convenience clause. Forth, the United Kingdom and Australia are in the same position that the employer may terminate the contract ‘in its sole discretion’ or ‘at any time and for any reason’ will not be subject to an implied term of good faith. The lessons to be learnt from this review of cases law is that the importance to check our terms and conditions whether the contract provisions a right to terminate for convenience and whether good faith clauses is applied as limits. In circumstances where we may wish to rely on good faith obligations, such clauses need to be specific.
format	Thesis
qualification_level	Master's degree
author	Nik Abdullah, Nik Abdul Hafiz
author_facet	Nik Abdullah, Nik Abdul Hafiz
author_sort	Nik Abdullah, Nik Abdul Hafiz
title	Application of good faith as necessary limits in exercising the termination for convenience clause
title_short	Application of good faith as necessary limits in exercising the termination for convenience clause
title_full	Application of good faith as necessary limits in exercising the termination for convenience clause
title_fullStr	Application of good faith as necessary limits in exercising the termination for convenience clause
title_full_unstemmed	Application of good faith as necessary limits in exercising the termination for convenience clause
title_sort	application of good faith as necessary limits in exercising the termination for convenience clause
granting_institution	Universiti Teknologi Malaysia, Faculty of Built Environment
granting_department	Faculty of Built Environment
publishDate	2015
url	http://eprints.utm.my/id/eprint/50786/25/NikAbdulHafizNikAbdullahMFAB2015.pdf
_version_	1747817534422253568

Application of good faith as necessary limits in exercising the termination for convenience clause

Similar Items