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Ohio Court Reforms Construction Contract to Correct “Manifest Absurdity” in Termination for Convenience Term

Constructlaw

which provided that the Owner will make payments for “work executed, including reasonable overhead and profit and direct costs incurred by reason of such termination.” including a 25% margin for overhead and profit. Courts are permitted to interpret a contract so as to not create a “ manifest absurdity.”.

Ohio 52
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#98:  Good Faith Limits on Termination for Convenience

NH Construction Law

They operate very much like “at will” employment contracts, permitting the employer to fire an employee at any time for any (or no) reason as long as some specific public policy is not offended. Such a provision was part of a commercial painting subcontract in Hate to Paint, LLC v. .”