Service of notice for determination in construction contracts

Determination is a remedy provided under contract for a party to discharge his obligations upon breach by the other party. When the party to contract intends to determine a contract, he must let the other party knows his intention to do so. He is required to follow several procedures before he is sa...

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Main Author:	Wan Ibrahim, Wan Mohd. Izzuddin
Format:	Thesis
Language:	English
Published:	2011
Subjects:	TH Building construction
Online Access:	http://eprints.utm.my/id/eprint/33659/5/WanMohdIzzuddinWanIbrahimMFAB2011.pdf
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id	my-utm-ep.33659
record_format	uketd_dc
spelling	my-utm-ep.336592018-05-27T08:09:10Z Service of notice for determination in construction contracts 2011-05 Wan Ibrahim, Wan Mohd. Izzuddin TH Building construction Determination is a remedy provided under contract for a party to discharge his obligations upon breach by the other party. When the party to contract intends to determine a contract, he must let the other party knows his intention to do so. He is required to follow several procedures before he is said to determine the contract validly. Standard forms and bespoke construction contracts usually provide procedures for parties to contract to do so. Failure to adhere to the procedures may cause the termination invalid and the repercussions of such failure is severe and of serious consequences to the determining party. When one party exercises his intention to determine a contract, the other party often seeks to destroy his intention by claiming non compliance to procedural requirement for valid exercise of determination under the contract. One party argues that he has followed the required procedures for service of notice and the other party claims otherwise. This has led to numerous arguments and disputes between the parties often end with arbitrations or litigations. The arbitrators and courts are not helping either as decisions have not been consistent depending on how one construes the ambiguous words. The underlying matter is the interpretation adopted by arbitrators and courts in construing the ambiguous words. There are two commonest methods of interpretations used by arbitrators and courts in construing commercial contracts; by literal method or commonsense business method. Different interpretation method conveys different decisions. The question is which one would be the appropriate interpretation method for service of notice for determination in construction contract. Hence, this research intends to identify the appropriateness between the two methods. This research was carried out mainly through documentary analysis of law journals and law reports. Eleven law reports from various jurisdictions were used in this research. Result appears to indicate that commonsense business approach would be the appropriate interpretation method for service of notice for determination in construction contract. A concrete answer may not be found as the literal and commonsense business methods for interpretation are built on different nature and most of all how one interpret contracts depends on one’s conception of contracts. Absolutely, there is no easy answer to this. One thing is absolute is that employer or contractor considering to determine a contract in construction contracts must follow the procedures strictly. 2011-05 Thesis http://eprints.utm.my/id/eprint/33659/ http://eprints.utm.my/id/eprint/33659/5/WanMohdIzzuddinWanIbrahimMFAB2011.pdf application/pdf en public masters Universiti Teknologi Malaysia, Faculty of Built Environment Faculty of Built Environment
institution	Universiti Teknologi Malaysia
collection	UTM Institutional Repository
language	English
topic	TH Building construction
spellingShingle	TH Building construction Wan Ibrahim, Wan Mohd. Izzuddin Service of notice for determination in construction contracts
description	Determination is a remedy provided under contract for a party to discharge his obligations upon breach by the other party. When the party to contract intends to determine a contract, he must let the other party knows his intention to do so. He is required to follow several procedures before he is said to determine the contract validly. Standard forms and bespoke construction contracts usually provide procedures for parties to contract to do so. Failure to adhere to the procedures may cause the termination invalid and the repercussions of such failure is severe and of serious consequences to the determining party. When one party exercises his intention to determine a contract, the other party often seeks to destroy his intention by claiming non compliance to procedural requirement for valid exercise of determination under the contract. One party argues that he has followed the required procedures for service of notice and the other party claims otherwise. This has led to numerous arguments and disputes between the parties often end with arbitrations or litigations. The arbitrators and courts are not helping either as decisions have not been consistent depending on how one construes the ambiguous words. The underlying matter is the interpretation adopted by arbitrators and courts in construing the ambiguous words. There are two commonest methods of interpretations used by arbitrators and courts in construing commercial contracts; by literal method or commonsense business method. Different interpretation method conveys different decisions. The question is which one would be the appropriate interpretation method for service of notice for determination in construction contract. Hence, this research intends to identify the appropriateness between the two methods. This research was carried out mainly through documentary analysis of law journals and law reports. Eleven law reports from various jurisdictions were used in this research. Result appears to indicate that commonsense business approach would be the appropriate interpretation method for service of notice for determination in construction contract. A concrete answer may not be found as the literal and commonsense business methods for interpretation are built on different nature and most of all how one interpret contracts depends on one’s conception of contracts. Absolutely, there is no easy answer to this. One thing is absolute is that employer or contractor considering to determine a contract in construction contracts must follow the procedures strictly.
format	Thesis
qualification_level	Master's degree
author	Wan Ibrahim, Wan Mohd. Izzuddin
author_facet	Wan Ibrahim, Wan Mohd. Izzuddin
author_sort	Wan Ibrahim, Wan Mohd. Izzuddin
title	Service of notice for determination in construction contracts
title_short	Service of notice for determination in construction contracts
title_full	Service of notice for determination in construction contracts
title_fullStr	Service of notice for determination in construction contracts
title_full_unstemmed	Service of notice for determination in construction contracts
title_sort	service of notice for determination in construction contracts
granting_institution	Universiti Teknologi Malaysia, Faculty of Built Environment
granting_department	Faculty of Built Environment
publishDate	2011
url	http://eprints.utm.my/id/eprint/33659/5/WanMohdIzzuddinWanIbrahimMFAB2011.pdf
_version_	1747816159595462656

Service of notice for determination in construction contracts

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