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The $64,000 question: What counts as “sufficiently serious”? | The $64,000 question: What counts as “sufficiently serious”? | ||
Does “failure to pay an amount due by the time specified in a contract” constitute a [[repudiatory breach]]? Usually failure to pay | Does “failure to pay an amount due by the time specified in a contract” constitute a [[repudiatory breach]]? Usually, in [[financing contract]]s, [[failure to pay]] will be a designated “[[event of default]]” prescribing exactly what should happen — so this question is moot — but it may apply where there is no such term: if your counterparty is a bank, offering you a loan, a [[revolving credit facility]], or some such thing. | ||
If your contract stipulates that [[time is of the essence]], then yes. If not, then it will depend on the circumstances. If the [[failure to pay]] was due to a [[force majeure]]-style external event, probably not. If the failure to pay was accompanied by an [[extended middle finger]], more likely. | If your contract stipulates that “[[time is of the essence]]”, then yes. If not, then it will depend on the circumstances. If the [[failure to pay]] was due to a [[force majeure]]-style external event, probably not. If the failure to pay was accompanied by an [[extended middle finger]], more likely. | ||
{{Event of default vs fundamental breach}} | {{Event of default vs fundamental breach}} |