What is a breach of contract?

A breach does not on its own automatically discharge a contract. It may allow the other party an option to treat the contract as discharged if the breach is sufficiently serious. The obligation of both parties to perform is discharged from the date of the termination. However, a party in breach may have to pay damages for any losses, past or future, caused to the innocent party as a result of the breach. It is to some extent a question of law and of fact in a particular case as to whether there has been a breach, the nature and seriousness of that breach, and the consequences and remedies arising from it.

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