Legal Question in Construction Law in California

house construction

does the contract end if deadline is passed


Asked on 5/24/07, 3:22 am

3 Answers from Attorneys

Gary Redenbacher Redenbacher & Brown, LLP

Re: house construction

You haven't given us enough information to formulate an answer. We'd have to assume too much.

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Answered on 5/24/07, 11:38 am
Jim Schaefer Schaefer & Associates

Re: house construction

More facts are needed. Usually a minor delay is not a material breach of the contract. But delay cases are very fact specific and more facts are needed to answer this question.

If you would like please contact me about representation and for further discussion about your case.

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Answered on 5/24/07, 12:18 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: house construction

It's not that simple. Most contracts are a thick layer cake of sequenced duties. For example, the owner may have to provide final plans and a deposit on Jan. 2. Then the contractor must provide a list of subs for approval on Jan. 15, the owner must approve the subs within 21 days, the contractor must complete grading by March 31, the owner must make a progress payment within 10 days, and so on and so on.

Failure of a party to perform by a deadline often excuses the other from performing his next duty, but not always; the controlling factor being whether a reasonable person understanding the project would think one party's completing Step 14 was prerequisite to the other's duty to take Step 15. However, the mere missing of a deadline will rarely "end" the contract, if by that you mean the other party's duties stop cold at that point, cannot be revived, and that he can walk away from the deal.

For one thing, courts distinguish between minor breaches and material breaches. Unless the contract contains a "time of the essence" or a drop-dead clause stating that failure to meet a deadline absolutely terminates the contract, a lateness that does not seriously prejudice the rights and interests of the other will be overlooked, leaving the contract intact, or at most leaving the aggrieved party with a right to money damages, but not a right to terminate. For another thing, most well-written contracts contain a right-to-cure clause, often requiring the non-breaching party to notify the breaching party of the alleged breach and allowing time to cure.

Finally, even when a contract terminates to the extent that no further performance can be demended of the non-breaching party, he may still have responsibilities to the breaching party, such as a duty to return benefits conferred (or pay their fair value), to mitigate damages, give notices, etc.

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Answered on 5/24/07, 6:12 pm


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