Full question:
What is a usual termination fee when a construction contract is not completed with no fault by the contractor to complete the project. what is a normal termination fee for a small construction contract
- Category: Contracts
- Subcategory: Recission
- Date:
- State: Texas
Answer:
Rescission is the legal remedy that ends the contractual obligations of both parties. When both parties agree to rescind a contract, any termination fees depend on the specific circumstances of the case. There is no standard formula for these fees; they are typically negotiated between the parties involved.
Factors that may influence the termination fee include the total contract amount, any incurred costs, lost wages, and labor already expended. A release may also be included in the termination agreement to limit the risk of future claims.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.