In general, the effect of the termination of a contract is to discharge the parties from their unperformed obligations under the contract. However, termination does not affect liabilities of the parties for breaches of the contract that occurred prior to the contract being terminated.
What happens when a contract comes to an end?
A termination date within a contract refers to when the contract will end. It is the date that the agreement will come to a natural end once the final payment has been made. This means that the terms no longer bind the involved parties.
What are the consequences of termination of construction contract?
When terminating your contracting agreement, it is always best to speak with legal counsel about the issues you are facing, and what the next steps are. If a contract agreement is not properly terminated, this could lead to additional lawsuits, liens, high legal fees and cost you endless amounts of time.
What makes a construction contract void?
In the case of construction contracts, this means that if a subcontractor fails to complete the work or carry out any part of it, then the entire contract is voided, and the company is not legally responsible for the cost of the remaining portion of the project.
Is a contract ending the same as termination?
Terminology for Ending Contracts
Sometimes, taking the Uniform Commercial Code (UCC) into account, termination can also refer to the legal ending of a contract without it being considered a breach. The term termination is generally used when a contract is being ended by either party, without breaching it.
What is the construction industry?
Construction industry refers to the industrial branch of manufacturing and trade related to building, repairing, renovating, and maintaining infrastructures.