A building contract may be found to have been abandoned by mutual agreement where neither party takes steps to perform the contract, the builder acquiesces in the other party's proposal not to proceed, and the builder's subsequent conduct (such as failing to reserve rights, invoicing only for preparatory work, and inviting the other party to take plans to other builders) is inconsistent with the contract remaining on foot. A court may raise the issue of abandonment with the parties even where it has not been pleaded, provided no prejudice results.
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