Termination by a Party in Breach

Abstract

In advising on commercial disputes it is not uncommon to find that each of the parties to a contract is, or at least may be, in breach of it. In such cases, a question often arises: does one party’s breach prevent it from terminating for the other’s breach or repudiation? While some aspects of this problem are relatively settled, others are not. This article examines the position adopted by the laws in Australia and England (which are substantially the same) and also raises some policy considerations.

Keywords: contract, termination, party in breach

JEL Classification: K10, K12, K30