What is the difference between termination, determination and a voided contract?

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Produced in partnership with Abdul Jinadu of Keating Chambers

Published on: 04 July 2019

In respect of commercial Contracts, under English Law there is no significant difference between the Terms ‘termination’ and ‘determination’.

A contract can be terminated or determined where a party to a contract Conducts itself in such a manner that its conduct is viewed in law as being so wrongful that the other party to the contract is entitled to terminate the contractual relationship. This can occur in two ways: either by a common law determination, where the guilty party must have committed a fundamental, or repudiatory, breach and the innocent party must have, by word or action, elected to accept the repudiation, or a contractual determination where a party may lawfully determine the contract by exercising powers to the effect expressly provided for in a contractual termination clause.

The term ‘termination’ or ‘determination’ in relation to a commercial construction contract connotes the ending of the contractor’s employment under the contract. The central point to note is that although the employment of the contractor

Abdul Jinadu

Barrister, Keating Chambers

Abdul Jinadu was called to the Bar in 1995 and has been a practising barrister in Keating Chambers since 1996, specialising in construction, engineering and energy disputes, and domestic and international arbitration. His practice covers a wide spectrum of advisory work, drafting and advocacy, related to standard form and bespoke contracts; contractors’, sub-contractors’ and employers’ claims; and professional negligence claims (architects, engineers, surveyors and valuers). He has acted for the full spectrum of clients, including construction and engineering companies, government organisations, corporations, public utilities, local authorities, consultancies, architects and engineers. He has extensive experience in the Court of Appeal, appearing there without the benefit of leading counsel.

He has extensive experience of a wide range of disputes and advisory work relating to infrastructure projects. Significant cases have involved oil and gas facilities, pharmaceutical plants, hospitals, mining, marine construction and major projects at Canary Wharf, as well as local authority cases and other major construction projects.

Jurisdiction(s):

United Kingdom

Key definition:

Term definition

What does Term mean?

The period of time from when a loan is borrowed to its final stated repayment date

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