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Performance and termination | Discharge by breach

Overview

Breach of contract may give the non-breaching party a right to terminate a contract.

When can a non-breaching party terminate for breach?

The non-breaching party may terminate a contract for breach if;

(a) a provision of the contract permits discharge for breach in the circumstances (eg, it might provide that in the event of failure to supply goods on a specific date the other party may terminate the contract)

(b) the other party repudiates the contract - that is, renounces their obligations under it (eg, they say that will not perform the contract); or

(c) the breach is sufficiently serious (minor or technical breaches will generally not allow the non-breaching party to terminate)

Detailed discussion forthcoming