- Breach of contract — Termination/unwinding of contract
This chapter deals with the right of one contracting party to terminate the contract as a result of the other party's breach. As expressed in the Sale of Goods Act, this right is known as the right to treat a contract as repudiated. The right to terminate for breach can arise in two types of cases. First, focusing on the factual consequences of breaching a contractual term, these may be so serious that the injured party is entitled to terminate. The requisite degree of seriousness is expressed in a number of ways. Second, focusing on the nature of the contractual term, the term in question may be regarded by statute, the express intention of the parties, or the implied intention that arises from established commercial practice, as being so important that any breach of that term, regardless of its consequences, severe or slight, gives rise to the right to terminate.
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