Contracts & ExecutionQuestion 843 of 1605
Termination of a construction contract 'for cause' typically means the contract is ended because:
a.The owner simply changed their mind with no reason
b.The contractor found a more profitable job
c.The weather turned bad for one day
d.One party materially breached or defaulted, giving the other the right to terminate
Explanation
Termination for cause (for default) occurs when one party materially breaches or defaults, such as by abandoning the work, failing to perform, or failing to pay, giving the non-breaching party a contractual or legal right to end the contract and pursue remedies. It is distinct from termination for convenience, which requires no fault. A one-day weather event or a contractor's desire for a better job does not, by itself, justify termination for cause.
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Related questions on this topic
- The parol evidence rule generally limits a party's ability to:
- Which of the following is generally an EXCEPTION where evidence outside the written contract may still be admitted despite the parol evidence rule?
- A written contract contains a clause stating, 'This document is the entire and final agreement of the parties, and no other promises apply.' This is known as:
- A 'termination for convenience' clause allows a party (often the owner) to:
- A contract may be discharged (obligations ended) by all of the following EXCEPT:
- The distinction between a breach of contract and a tort is important because:
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)