A contract is an agreement between two parties. Contract law is the primary area in which construction contracts are administered. The legal aspect of a construction contract is contained in written conditions of a general or special nature. The two parties undertake to work within the established conditions and are obliged to respect them under penalty of penalties indicated in the contract or implicit in the nature of the contract. Contracts of this nature are legally binding on both parties and a judgment passed against either party has the force of law under which the contract is made. (McLangan, 1991). Contract law applies only when one of the parties has breached the contract or done something that does not comply with the requirements of the contract, for example: when the client fails or refuses to pay for work certified for payment or when the The contractor does not proceed with the work with due diligence or in accordance with the agreed timescales and performance schedule. In addition to legal action under contract law, the actions available to parties to a contract include determination of contract, release from liability, release from obligation and consensual variation. (D Khoury et. al, 1992) Any breach of contract gives rise to a cause of action; not all violations release from liability. This will depend on whether the breached term is a condition or warranty or whether there has been a repudiatory breach...
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