Can an owner terminate a contract where the contractor has breached the contract due to poor quality or defective work?
British Columbia, Canada
The following excerpt is from Lee (dba Neo Interiors) v. Cui, 2021 BCCRT 1055 (CanLII):
13. An owner has the right to end a contract where the contractor has breached the contract in such a substantial or fundamental way that it amounts to a “repudiation” or rejection of the contract. In such circumstances, the contract is at an end and both parties are excused from further contractual obligations. Work that is alleged to be poor quality or defective generally does not amount to a repudiation and instead may entitle an owner to damages: Lind v. Storey, 2021 BCPC 2.
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