Renard Constructions v Minister for Public Works

(1992) 26 NSWLR 234; [1992] NSWCA 264

NSW Court of Appeal

Built by Barristers,
For Australian Law.

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Interrogate

Catchwords

1. Contract
2. › Implied terms
3. › Implication by law
4. › Good faith and reasonableness in performance
5. › Whether obligation of reasonableness implied in exercise of contractual power to take over works or cancel contract
6. › Whether good faith obligation implied in all contracts as matter of law
1. Contract
2. › Construction contracts
3. › Default clauses
4. › Show cause provisions
5. › Exercise of power to take over works
6. › Whether principal must act reasonably in forming satisfaction that cause not shown
7. › General Conditions of Contract NPWC Edition 3, cl 44.1
1. Contract
2. › Implied terms
3. › Implication ad hoc
4. › Business efficacy
5. › Whether term of reasonableness satisfies tests in Codelfa Construction v State Rail Authority
6. › Whether term necessary to give business efficacy to contract
1. Restitution
2. › Quantum meruit
3. › Repudiation of contract
4. › Whether quantum meruit recovery capped by contract price
5. › Whether contract price forms ceiling on recovery

Quick Take

Contracts may be subject to an implied obligation of good faith and fair dealing in their performance, and the exercise of contractual powers (including default and termination powers) may be subject to an implied requirement of reasonableness. Quantum meruit recovery following acceptance of repudiation is not limited to the contract price.