Legal Updates

When after contentions of breach complete severance between the parties occurred for years the agreement is deemed terminated

February 15, 2021

Apartment owners discovered that an developer with whom they previously contracted to carry out a TAMA 38 project had recorded cautionary notes on their rights after no formal termination notice was given by the them, even though for three years there was complete disengagement and the tenants had already contracted with another developer.
The Court held that an agreement can also be terminated by conduct and the cautionary notes should be removed. The desire to terminate a contract does not have to be expressed in giving a formal notice, but rather the expression of a will by conduct. Here, eight years have passed since the date of signing the agreement and although no formal termination notice was given, the tenants raised allegations of many breaches of contract on the part of the developer and there was a lack of trust between the tenants and the developer. The agreement was terminated by virtue of conduct, due to a complete severance for years that occurred between the parties and this after neither party engage in any way to revive the agreement.