How to Break a Building Contract

Both paties should come to an agreement to cancel the building contract.

Contracts represent an expansive area of law in our country. Contracts are used to signify agreements on a wide array of issues, including the construction of various buildings. When you no longer wish to execute your side of the bargain, you should not merely fail to perform. You could open yourself up to personal or business liability for breach of contract. Your best option is to enforce a termination provision on your contract, notarizing any new documents signed that memorializes the termination.

Instructions

1. Consult an attorney and your state's Consumer Protection bureau to outline your cancellation options, particularly if the contract fails to mention how to rescind the contract (see Resources). You should also inquire about your legal options should the other parties fail to agree to release you from your contract obligations.

2. Review the provisions on your contract that governs the steps to ending the contract. These steps may be in a section labeled "Termination," or "Cancellation," for example. The term may require a simple written notice that you intend to rescind the contract within a certain number of days after entering into the agreement.

3. Complete the procedure outlined in the termination provisions. For example, you may be required to submit a notarized letter, stating that you are enforcing the termination provision, effective on the date of writing the letter. Or you may be required to pay a fee to the other contract signatories. If you are unsure how to translate the contract term, contact legal counsel to help you sort through the process.

4. Transmit the letter to the recipient and obtain a receipt acknowledging that the package was received. For example, you can send the letter through the United States Postal Service and request "Return Receipt Requests." Retain the receipt in a safe place.

5. Obtain written, signed confirmation from the other signatories acknowledging that all parties have agreed to rescind the contract and any related performance. Be sure that each party has an original, meaning that each party has signed every copy of the termination acknowledgment. Notarize the document with a local notary.

References

• State of Michigan: I Changed My Mind. Can I Cancel This Contract?

Resources

• Consumer Action Website: Consumer Protection Offices
• Lawyers.com: Find A Lawyer
• CA Dept of Consumer Affairs: Consumer Transactions with Statutory Contract Cancellation Rights
• Jefferson Parish, Louisiana: Building Cancellation Contract