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Template:Event of default vs fundamental breach: Difference between revisions
Template:Event of default vs fundamental breach (view source)
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A '''[[fundamental breach of contract]]''' is a failure to perform its terms in such a way that deprives the other party of the basic benefit of the [[contract]]. This could be anything — like a duck, you know it when you see it — but beyond being an outright failure to perform one’s material obligations it need not, and logically cannot, be comprehensively articulated in the contract. | A '''[[fundamental breach of contract]]''' is a failure to perform its terms in such a way that deprives the other party of the basic benefit of the [[contract]]. This could be anything — like a duck, you know it when you see it — but beyond being an outright failure to perform one’s material obligations it need not, and logically cannot, be comprehensively articulated in the contract. | ||
An [[event of default]], on the other hand, ''is'' articulated, usually at [[Tedious|painful length]], in the contract, which then contains detailed provisions setting out what should happen, to whom, by when, if an [[event of default]] befalls either party. | An '''[[event of default]]''', on the other hand, ''is'' articulated, usually at [[Tedious|painful length]], in the [[contract]], which then contains detailed provisions setting out what should happen, to whom, by when, if an [[event of default]] befalls either party. | ||
Now while the same set of circumstances might be an [[event of default]] ''and'' a [[Fundamental breach|fundamental breach of contract]] — almost certainly will be, in fact — treating a case as an [[event of default]] is to see it as “infra-contractual action”,<ref>I just made that expression up, by the way</ref>, contemplated by and provided for ''within the four corners of the contract''; while treating it as a [[fundamental breach]] is thereby ''to cast the whole contract into the fire''. For what good are the promises in it, after all, if the other fellow won’t keep them? | Now while the same set of circumstances might be an [[event of default]] ''and'' a [[Fundamental breach|fundamental breach of contract]] — almost certainly will be, in fact — treating a case as an [[event of default]] is to see it as “infra-contractual action”,<ref>I just made that expression up, by the way</ref>, contemplated by and provided for ''within the four corners of the contract''; while treating it as a [[fundamental breach]] is thereby ''to cast the whole contract into the fire''. For what good are the promises in it, after all, if the other fellow won’t keep them? | ||