The following Dispute Resolution guidance note Produced in partnership with George McPherson of Three Verulam Buildings provides comprehensive and up to date legal information covering:
The termination of a contract by reason of one party’s breach of contract arises as follows:
one party to the contract is in breach of contract
the relevant breach is an anticipatory breach or a repudiatory breach, and
the innocent party accepts the breach
This Practice Note outlines each of these prerequisites of termination for breach of contract. It also considers the relationship between repudiatory breach and contractual provisions which give an express right to terminate for 'material breach'.
For general guidance on how to terminate contracts, see Practice Note: How to terminate an agreement.
The general rule is that a party to a contract must perform precisely what they agreed to do.
If a party fails to do this, they will be in breach of contract.
In order to determine whether a party is in breach of contract, the following two stage approach is taken:
first, ascertain the scope of the party’s obligations under the contract:
a party’s obligations under a contract are derived from the terms of the contract, as agreed by the parties, but
where there is doubt about the meaning of the contract, a court must ascertain that meaning by using recognised principles of interpretation
next, determine whether the party’s actual performance measures up to their obligations
Note that when determining generally
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