![]() A contract will commonly expressly state which breaches give rights to terminate and may also include procedures to comply with where there has been a repudiatory breach if the aggrieved party wants to then terminate. Whichever is the case, if there is a written agreement in place it’s essential to carefully check it. Many businesses have detailed written contracts, negotiated with the other party or which may be your own terms and conditions or those provided by a supplier or customer. There are choices to be made which impact the damages recoverable. There are major implications of repudiating a contract or deciding not to. If you termiante you would be relying on the common law right to terminate for repudiatory breach breach and in the event of dispute, that a court will decide that repudiation was lawful. If a breach is not expressly stated to be repudiatory in the contract, it is risky to terminate the contract. Before terminating a contract, it’s essential to be very confident that you have the right to repudiate. The terms of the contract may expressly state that a breach of a specified type is repudiatory, giving the other party the right, but not the obligation, to terminate the contract. ![]() In all contracts some of the terms and conditions (clauses) will be more important than others. After a repudiatory breach the other party can decide to terminate the contract or not. A repudiatory breach is a breach which is so serious that it potentially deprives the other party of the full benefit of the contract.
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