Under what condition can a contractor seek to terminate a contract?

A contractor can seek to terminate a contract for substantial breaches made by the client or provider because this condition indicates a fundamental failure to meet the contractual obligations. In legal terms, a substantial breach is one that significantly undermines the essence of the contract and makes it difficult or impossible for the contractor to fulfill their duties effectively. This could include actions such as the client failing to make necessary payments, not providing agreed-upon materials, or other significant violations of the contract terms. Termination under these circumstances is legally justified because it protects the contractor from continuing under unfavorable or untenable conditions.

In contrast, minor disagreements may be a normal part of the contracting process and usually do not justify termination. Rising costs or delays in the project timeline, while potentially frustrating and challenging, typically do not equate to substantial breaches unless they are expressly addressed within the contract as conditions that allow termination. Therefore, substantial breaches are a clear and definitive reason for a contractor to seek to terminate a contract.