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27 Sep 2021

Termination for "material breach" – what exactly is "material"?


Contracts for the international sale of goods often contain provisions entitling one of the parties to terminate the contract for “material breach”. If the parties have expressly defined what they mean by material breach, then this should not give rise to much uncertainty if the crunch comes, and one party wishes to terminate. This article considers what happens if “material breach” is left undefined, as it is a question which we have been asked by traders quite often in recent times.

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