Part II Breach and Termination, 3 Breach of Contract

Subject(s):

Breach of contract — Frustration and contract — Termination/unwinding of contract

This chapter examines the significance of breach of contract. A party seeking to exercise the right to terminate for breach of contract must prove that the other party has broken the contract in the first place. Proving that a breach of contract has occurred involves three basic elements: (1) the party in question must have been under a contractual obligation; (2) they must have failed to perform that obligation; and (3) there must be no lawful excuse for that failure. All of these elements involve complex issues of law. Where a breach of contract has occurred, there are various remedies that may be available to the injured party. They will in all cases be entitled as of right to an award of damages, though if the breach has caused no loss these will only be nominal.