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What are the legal implications of one party terminating a construction contract without lawful justification?

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The termination of a construction contract by one of the parties without lawful justification obligates the terminating party to compensate the other party for the direct damages incurred, such as losses related to manpower and penalties arising from its contracts, provided that the damage and the causal link are proven.

The termination of a construction contract by one of the parties without lawful justification obligates the terminating party to compensate the other party for the direct damages incurred, such as losses related to manpower and penalties arising from its contracts, provided that the damage and the causal link are proven.
Source: Radiif.com (رديف) · Saudi Legal AI Platform

Legal References & Citations

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