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NSW Termination of Building Contract - Builder Suing Me for Breach of Contract

Discussion in 'Australian Consumer Law Forum' started by sidAli, 12 March 2016.

  1. sidAli

    sidAli Member

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    I had terminated (over email) a building contract with a builder since I did not get the finance approval. The builder is suing me for $100K for damages and losses. He is claiming that I repudiated and had a breach of contract and he elects to terminate the contract.
     
  2. Michael T

    Michael T Well-Known Member

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    Read your contract carefully - it will usually set out whether you can terminate the contract/the contract is conditional on finance approval, the form of notice that you need to give and you can check the clauses that they claimed you breached. If you have a lawyer prepare the original contract, go back to them for legal advice asap.
     
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  3. Sophea

    Sophea Well-Known Member

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    Hi sidAli,

    I agree with Michael T above. Read your contract carefully and see if there are any clauses which would allow you to terminate in these circumstances. But in any event, the damages that he is claiming must reflect his actual loss, therefore he would be entitled to any loss he has incurred in purchasing materials etc in reliance on the contract and/or damages which put him in the position he would have been in if the contract had been fulfilled as intended.

    I would get customised legal advice if possible.
     
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