How do I terminate a contract with the Contractor who has left Panama City Florida and has not performed the work but has passed my Contract to another Contractor that I do not wish to use? My Insurance company has give me a Contractor to use.
1 reply
Oct 14, 2019
How to terminate a contract and when that can be done will come down to what's in the contract. If the contract for work doesn't specifically create a process for terminating the agreement, then it's important for the party terminating the agreement to provide written notice of the termination, along with a clear list of reasons why the agreement is being terminated. And, where possible, it's a good idea to cite the contract terms and identify why the contract is being terminated. The more objective the reasoning for cancellation, typically, the better.
With that in mind, note that contractors are typically able to subcontract-out a large portion of the work. So, if that's not prohibited by the contract, then a contractor may pass off much of their work to another party without issue. Granted, unless a contractor is also entitled to assign their contract to another party under the agreement, a contractor can't typically just avoid the agreement altogether and pass it along to another party.
For more information on termination and termination clauses, these articles should be a good resource:
(1) How a Termination Clause Works in a Construction Contract(2) Termination for Convenience | Can Your Customer Terminate You Without Good Reason?(3) Termination for Cause | When Can Construction Contracts Be Terminated for Cause?(4) Wrongful Termination | When is Termination Considered Wrongful?