Termination of the Contract for Breach

Abstract This chapter deals principally with the termination of a contract by reason of a serious breach. It considers the way that contractual duties are classified as conditions, warranties, or innominate terms. The right to terminate exists in all cases where there is a breach of condition (except in the case of certain ‘slight’ breaches by the seller). Termination for breaches of contract giving rise to serious prejudice (repudiatory breaches, breaches going to the root of the contract) is then discussed. The buyer’s right to examine the goods and reject them if the breach justifies termination is next considered, as well as the loss of the buyer’s right of rejection when accepting the goods. The particular rejection rights of consumer buyers are next treated. This is followed by a comparison of rejection for breach of contract and rescission for misrepresentation. A discussion of defective trade documents then occurs and finally the question whether a seller may cure defective performance is addressed.