CONTRACT LAW — Breach of Contract — Premature Termination — Termination Before Expiry of Stipulated Mobilisation Period Constitutes Breach
Principle Statement
The agreement allowed the plaintiff/appellant two weeks from the date of signing the contract within which to commence work on the site. That period of two weeks would terminate, according to the finding of the learned trial judge, on the 18th of August, 1997. The termination letter [Exhibit 'D'] however, was written and served on the appellant on the 14th of August, 1997, four days before the expiration of the two weeks period. I agree with both the learned counsel for the appellant and the trial court that the breach of contract between the parties had indeed taken place as the provision made in written agreement, Exhibit 'F' was not fully complied with by the respondents.
Ratio Decidendi (Source)
Per Muhammad, JSC, in Kaydee Ventures Ltd. v. The Hon. Minister of Fed. Capital Territory (2010) NLC-123-264-2002(SC) at pp. 19-20; Paras B-A.
"The agreement allowed the plaintiff/appellant two weeks from the date of signing the contract within which to commence work on the site. That period of two weeks would terminate, according to the finding of the learned trial judge, on the 18th of August, 1997. The termination letter [Exhibit 'D'] however, was written and served on the appellant on the 14th of August, 1997, four days before the expiration of the two weeks period. I agree with both the learned counsel for the appellant and the trial court that the breach of contract between the parties had indeed taken place as the provision made in written agreement, Exhibit 'F' was not fully complied with by the respondents."
Explanation / Scope
This principle establishes that terminating a contract before the expiry of a stipulated mobilization period constitutes a breach. The principle applies where a contract specifies a period for performance. It ensures that parties are given the agreed time to perform. The principle reflects that premature termination is a breach. It prevents parties from acting before the contractual period expires. The court must determine if the termination was premature. The principle provides guidance on premature termination as breach.
