When is a profit lost?
Klein, Rudi
When is a profit lost? - 2005 - Construction News 6937 6 October 2005, 26(1) .
Discusses the law relating to repudiation of a contract, where, although a contractor carries out work in accordance with the specification and programme, the client nevertheless terminates the contract prematurely. Although the issue has not been tested in the courts in this country, rulings in the USA and Australia may be relevant. In "Boomer v Muir" (24 P 2d 570 (1933)) the Supreme Court of California decided that a contractor was entitled not only to claim damages for breach of contract but also a quantum meruit, ie a reasonable or fair value for work carried out. In "Renard Constructions (ME) Pty Limited v Minister for Public Works" ((1992) 26 NSWLR 234) the New South Wales Court of Appeal held that the innocent party could elect either to sue for damages for breach of contract or a quantum meruit. The leading authority on the subject in this country, however, Keating on building contracts (ISBN 0421565306), states that a contractor does not have the option of ignoring the contract and claiming quantum meruit.
BOOMER V MUIR
RENARD CONSTRUCTIONS (ME) PTD LTD V MINISTER FOR PUBLIC WORK
When is a profit lost? - 2005 - Construction News 6937 6 October 2005, 26(1) .
Discusses the law relating to repudiation of a contract, where, although a contractor carries out work in accordance with the specification and programme, the client nevertheless terminates the contract prematurely. Although the issue has not been tested in the courts in this country, rulings in the USA and Australia may be relevant. In "Boomer v Muir" (24 P 2d 570 (1933)) the Supreme Court of California decided that a contractor was entitled not only to claim damages for breach of contract but also a quantum meruit, ie a reasonable or fair value for work carried out. In "Renard Constructions (ME) Pty Limited v Minister for Public Works" ((1992) 26 NSWLR 234) the New South Wales Court of Appeal held that the innocent party could elect either to sue for damages for breach of contract or a quantum meruit. The leading authority on the subject in this country, however, Keating on building contracts (ISBN 0421565306), states that a contractor does not have the option of ignoring the contract and claiming quantum meruit.
BOOMER V MUIR
RENARD CONSTRUCTIONS (ME) PTD LTD V MINISTER FOR PUBLIC WORK