What are the Effects of a Breach
Explain what are the Effects of a Breach?
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If the breach is of a minor term (warranty), the injured party is entitled to damages for the amount of defective performance but cannot repudiate the contract and must complete his or her own obligations under the contract. This is according to the doctrine of substantial performance, which stipulates that where a contract is substantially performed but defective or incomplete in some minor respect, the other party must perform its part of the bargain. If the breach is of the whole contract or of an essential/major term (condition), also known as a fundamental breach, the injured party can elect to treat the contract as discharged. If an injured party elects to proceed with the contract and take benefits under it despite a major breach, he or she may not later treat the contract as discharged.
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