Construction Goes Off the Rails
University of Sydney - Faculty of Law
University of Sydney
December 1, 2010
Journal of Contract Law, Vol. 22, No. 3, pp. 287-299, 2006
Sydney Law School Research Paper No. 10/135
Parties to a contract may agree to restrict or qualify the right of one party to terminate for another’s breach or repudiation. A typical clause may require notice to the defaulting party, and an opportunity to rectify the default or show cause why the right to terminate ought not be exercised. Other clauses may require the right to terminate to be exercised within a limited period of time.
In Wallace-Smith v Thiess Infraco (Swanston) Pty Ltd (2005) 218 ALR 1;  FCAFC 49, the Full Federal Court considered the effect of a clause restricting the right to terminate. This article examines critically that decision and the principles governing the operation of such clauses. It suggests that there are several flaws in the reasoning of the Full Court.
Number of Pages in PDF File: 12
Keywords: Contract, Breach of contract, Termination
JEL Classification: K10, K12, K30
Date posted: December 2, 2010