What is the legal test for terminating a contract where a contractor has been found to be poor quality or defective?
British Columbia, Canada
The following excerpt is from Reid v. Beuselinck, 2021 BCCRT 1089 (CanLII):
17. An owner has the right to end a contract where the contractor has breached the contract in such a substantial or fundamental way that it amounts to a “repudiation” or rejection of the contract. In such circumstances, the contract is at an end and both parties are excused from further contractual obligations. Work that is alleged to be poor quality or defective generally does not amount to a repudiation and instead may entitle an owner to damages: Lind v. Storey, 2021 BCPC 2.
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