Another judgment has stated that a material breach “connotes a breach of contract which is more than trivial, but need not be repudiatory” (a breach is repudiatory when it is so serious that it allows the contract to be terminated by the innocent party – analysis is required on a case by case basis in respect of the seriousness of the issues experienced in the context of the contractual arrangement). One judgement held that a breach may be ‘material’ if it is “serious in the wide sense of having a serious effect on the benefit which the innocent party would otherwise derive”. Over the years the courts have given guidance in commercial cases. Otherwise the meaning in a particular case will be decided by the courts taking in to account factors including the intention of the parties who have used the expression in an agreement. The phrase ‘material breach’ has no set legal meaning unless given one in a contract. ![]() ![]() The commercial team at Herrington Carmichael LLP solicitors are highly experienced in drafting and interpreting contract clauses. ![]() What is a ‘material’ breach of contract by a party to a commercial contract? This is a critical issue regularly considered by the courts – and one that exercises clients and lawyers alike in the course of their work.
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