Statutory right of termination

A statute can create a right to terminate a particular contract, or the statute may specify certain conditions which, if breached, create a right to terminate as if those conditions had been written into the contract.

For example, the Competition and Consumer Act 2010 (Cth) provides a number of consumer guarantees relating to contracts between a consumer and a supplier. Breach of those guarantees by the supplier entitles the consumer to a number of remedies, including termination of the contract.

The most common guarantees are that the goods will:

• be of acceptable quality;
• be fit for purpose; and
• match the description.

The various state domestic building legislation have similar provisions; however, those provisions usually operate as implied terms in a contract.