R Developments Pty Ltd v Forth

[2017] ACTCA 38

ACT Court of Appeal

Built by Barristers,
For Australian Law.

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Interrogate

Catchwords

1. Contract
2. › Construction
3. › Standard form building contract
4. › Interpretation of contractual clauses
5. › Owner's obligation to provide evidence of capacity to pay
6. › Whether obligation ended upon commencement of works by builder
7. › Whether builder waived compliance by commencing works
1. Contract
2. › Termination
3. › Contractual right to terminate
4. › Notice requirements
5. › Whether termination notice adequately identified alleged breach
6. › Whether notice must specify the contractual provision relied upon
1. Contract
2. › Termination
3. › Contractual right to terminate
4. › Whether clause created freestanding obligation or merely trigger for termination
5. › Whether implied obligation arose from termination clause
1. Contract
2. › Election and waiver
3. › Waiver of contractual rights by conduct
4. › Builder commencing works without requiring compliance with pre-commencement obligations

Quick Take

Under the ACT Home Building Contract, a builder's obligation to obtain evidence of an owner's capacity to pay under clause 4 is extinguished once the builder commences works; a builder who commences works without requiring compliance with pre-commencement obligations waives the right to later terminate on that basis. A termination notice under a contract with multiple termination triggers must adequately identify the specific ground relied upon.