A paper provided to the Society of Construction Law Hong Kong in respect of a talk scheduled for 15 November 2001 that was cancelled
The author discusses termination for convenience clauses, and some of the issues that such clauses give rise to; and in particular looks at the circumstances in which the clause can be utilized, and the financial consequences.
Introduction – A Widely Drafted Clause – Possible Limitations on a Termination for Convenience Clause – All Power to the Owner? – Are there Constraints? – Are Reasonable Grounds Necessary? – Good Faith – Equitable Interference – No Overlap with a Default Clause – A Limiting Purpose – Review by an Arbitrator – Financial Consequence of Exercising a Power to Terminate – The Financial Clause.
The author: J. A. Tackberry is a barrister and Queen's Counsel in London.