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Drafting An Abandonment Clause

In a construction contract, the abandonment clause can have a few different meanings, making it one of the more confusing terms in a contract. In this article, we will discuss the two most common abandonment clause meanings, contract abandonment and abandonment of a construction contract, and how contractors can distinguish between them. When drafting an abandonment clause, it’s recommended that contractors work with their Jacksonville construction lawyers to avoid any confusion or error.

Abandonment of a Construction Project

The first type of contract abandonment we will discuss is when a contractor cannot perform the work on their project. This can be due to any number of reasons:

  • The contractor does not begin the project in a reasonable amount of time
  • The contractor cannot complete the agreed upon work
  • The contractor fails to resume their work in a reasonable amount of time

When the contractor fails to perform the work on their project, it’s referred to as abandonment of a construction project. If the contractor does not have a valid, legal excuse for abandonment of a construction project, there is a probably chance they will face disciplinary problems, such as reimbursing the owner for any incurred costs.

Contract Abandonment

When all parties involved in a binding contract conduct themselves in a manner where the original contract is no longer valid is contract abandonment. Contractors can remember this meaning by associating with parties abandoning their contract. Contract abandonment happens when both the parties breach the contract and violate their mutual terms of agreement. For contract abandonment to be enforceable, all parties involved need to agree to abandon the contract. As Jacksonville construction attorneys, we know that if the parties are unable to come to a mutual decision on abandoning the contract, it can lead to severe consequences, such as litigation.

To schedule a consultation with a Jacksonville construction attorney from Trent Cotney, P.A., please call us today at 904.425.5030 or submit our contact request form.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.

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