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Breach of contract is when a binding agreement is not honoured by one or more of the parties to the agreement.

Minor breaches of contract can be remedied and if the parties are in agreement then the contract will continue.

If the breach is severe then the relationship between the parties is irreparably damaged and the contract can be terminated; this is called a repudiatory breach. the party that suffers the loss may be able to claim compensation.

Some particulars will depend on whether the breach has an employment context or is in a commercial setting.

For other legal topics return to the law library.

Breach of contract areas

Breaches in a commercial setting

Parties enter into commercial contracts for the provision of services and/or goods in return for payment. If one of the parties fails to honour a term of the agreement then they will be in breach of contract. A breach may occur if the service is defective or if there is a failure to deliver services […]

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Breaches in the employment context

An employment contract is generally set out in writing, however a contract will exist even if it is not documented. Employers are sometimes keen to change the terms under which their employees work, whether that’s a change in pay and benefits or a change in the nature and place of work. Making a change to […]

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