Examination Timing: 00H00M46S
David enters into a contract with Sarah for the supply of 500 units of a specialised product. After a few months, David finds out that Sarah has significantly delayed the delivery and the products do not meet the specified quality standards. David decides to terminate the contract.
Which legal principle best describes his right to terminate the contract?
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David’s right to terminate the contract arises from a repudiatory breach. This type of breach occurs when one party fails to perform a fundamental term of the contract, thereby giving the other party the right to terminate the contract and claim damages. In this case, the delay and the substandard quality of the products constitute a repudiatory breach.
Key Point: A repudiatory breach is a severe breach of contract that entitles the innocent party to terminate the contract and seek damages. It is essential for ensuring that parties fulfil their fundamental contractual obligations.
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