Termination of contract : abandonment of work

Abstract

The main objective of entering into a contract is generally to see it through to completion. However, not every contract will achieve its goal. It is not uncommon for a contractual relationship to terminate in the course of its performance, without achieving its objective. The major Malaysian standard form of contract contains express provisions that entitle the employers to terminate the contract in the event the contractors abandon the contracts. The inclusion of such an express clause is a prudent decision taken by employers in view of the possibility of contractors abandoning their works. However, a perusal of the law reports, both national and international shows that not many employers have utilized this provision or not successful in utilizing it. JM Hill & Sons Ltd v Camden LBC, the action by contractors as withdrawal of labour and most of plant after complaining about late payment and employer does not pay to the contractor the amount due to certificate by architect are still not tantamount to abandonment of work. Therefore, the objective of this research is to determine the essential elements of abandonment of construction by the contractor. The scope of study is the cases involve on termination specifically on abandonment of work by contractor and will be referred to standard form of contract express provision on abandonment or if any absent of this clause, it will referred to Contract Act. The methodology of study is case analysis which is use LexisMalaysia Search engine regarding the case of law on abandonment. The analysis cases focus on six cases from UK, Malaysia and Philippines. The study found the element of abandonment is by intention, conduct, without employer default and termination not accordance of procedure. As conclusion, the objective of this research achieved by this essentials element had been established.