Breach of contract (English law)
A breach of contract occurs when a party fails to perform a contractual obligation as required, for example by non-performance, late performance or defective performance. The legal consequences depend on the term, the nature and seriousness of the breach, the contract and applicable law. A breach can give rise to damages if the relevant conditions are met; it does not always entitle the other party to terminate the contract. An anticipatory breach can arise before performance is due in the appropriate circumstances.
Worked example
A seller delivers a machine late despite a binding delivery date. The buyer considers whether a breach occurred, whether recoverable loss resulted and whether the breach gives any right to terminate under the contract and applicable law.
Common mistake
Assuming that any breach automatically permits termination, or that breach alone establishes a particular amount of recoverable loss.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | LW (ENG) | Direct | September 2026–June 2027 |