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Construction Law

: The South Carolina Construction Law Blog

Court Rules That Termination For Convenience May Not Be Enforceable If It Is For "Convenience" of Bid Shopping

By Ryan McCabe

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    A Maryland Court of Appeals in the case of Questar Builders, Inc. v. C.B. Flooring, LLC, 2009 MD.LEXIS627, considered the issue of whether private parties may terminate a contract for convenience whether a Termination for Convenience clause makes a contract voidable.  The Court held that a Termination for Convenience clause may be enforceable so long as it is used in a manner to mitigate genuine risk.  The Court held that Termination for Convenience clause may make a contract voidable if the party uses it for the mere purpose of shopping for additional bids.

    This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice. Seek a competent attorney for advice on any legal matter.

Full post as published by The South Carolina Construction Law Blog on February 07, 2010 (boomark / email).

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