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Repudiatory breach
Contract Law

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Term: repudiatory breach

1.

A repudiatory breach of contract is a breach of contract that goes to the very root of the contract, evidences intention on the part of the party in breach that they no longer intend to be bound by an essential term of the contract.

Breach of a fundamental term in this way entitles the innocent party to accept the breach of contract (that is the repudiation of the contract) and bring the contract to end, or alternately affirm the contract.

If the innocent party wishes to accept the breach and terminate the contract, they must do so unequivocally and without undue delay. Delay in its own right is not fatal, provided the innocent party does not do anything to affirm the contract in the interim, and it is prudent to put it on the record that the innocent party objects to the conduct.

 

 

Usage: The judge ruled that the failure to pay the supplier was a repudiatory breach

Related Words: contract; breach of contract; damages; liquidated damages; warranty; indemnity; condition of contract; material breach; anticipatory breach; remoteness of damage.


 

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