Fundamental Breach

What is a fundamental or repudiatory breach of contract?

Where a contract exists between parties there are a number of ways in which that contract can be breached.  A breach of contract is a material non-compliance with the terms of a legally binding contract.

A fundamental or repudiatory breach of contract is where the severity of the breach is such that the contract can be terminated instead of the innocent party seeking damages.

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It is considered that the breach goes to the root of the contract, examples of this include an intention to abandon and altogether refuse performance of the contract and an intention to deprive the innocent party of the whole or a substantial benefit that the innocent party should obtain from the further performance of the defaulting party's own contractual obligations.

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