What is the test for a defendant to repudiate a contract for reducing its construction costs?
British Columbia, Canada
The following excerpt is from Knappett Construction Ltd. v. Axor Engineering Construction Group Inc., 2003 BCSC 73 (CanLII):
The plaintiff relies on the principle in Boone v. The King, 1934 CanLII 73 (SCC), [1934] S.C.R. 457, that a defendant may not repudiate a contract on the basis of a default by the plaintiff where the alleged default is directly attributable to the actions of the defendant. I agree that this principle is applicable to the case at bar. I find that the defendant cannot justify repudiating the Agreement on the basis of the plaintiff’s failure to reduce its construction costs. The defendant cannot take advantage of the plaintiff’s refusal to comply with a demand that, due to the defendant’s conduct, appeared unreasonable.
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