Q&As

What, if any, is the difference in terms of recovery of damages for a contractual right to terminate for breach and damages for repudiatory breach?

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Published on LexisPSL on 14/03/2017

The following Dispute Resolution Q&A provides comprehensive and up to date legal information covering:

  • What, if any, is the difference in terms of recovery of damages for a contractual right to terminate for breach and damages for repudiatory breach?
  • Contractual right to termination for breach
  • Repudiatory breach

What, if any, is the difference in terms of recovery of damages for a contractual right to terminate for breach and damages for repudiatory breach?

We have assumed for the purposes of this Q&A that there is a clause in a contract which allows party A to terminate and the situation where party B is in repudiatory breach such that party A can elect to treat the agreement as repudiated and so treat it as at an end and claims damages.

See Practice Notes: Contractual damages—general principles and Causation and remoteness in contractual breach claims.

Contractual right to termination for breach

Where a contract contains an express right to terminate the agreement for breach, it should set out the circumstances needing to exist to give rise to the right to terminate. It may also set out what the consequences may be, including, for example, any limitations on the recovery of damages. See Practice Notes: Drafting notices of breach and Drafting termination notices—contract

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