Template:Event of default vs fundamental breach: Difference between revisions

Template:Event of default vs fundamental breach (view source)

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 ===The subtle difference between an [[event of default]] and a [[fundamental breach of 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.
+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.
-Now while the same set of circumstances might be an {{{{{1}}}|Event of Default}} ''and'' a [[Fundamental breach|fundamental breach of contract]] — almost certainly will be, in fact — treating a case as an {{{{{1}}}|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?
 Thus alleging [[fundamental breach]] is to cancel the contract, ''with'' prejudice to your remaining rights under it, and to prostrate yourself at the feet of the [[Queen’s Bench Division]] for redress by way of damages, being the liquidated present value of those remaining rights, determined by reference to golden streams of the [[common law]] precedent, whose terms might not be quite as advantageous to you as those you might have asked for ''were you able to agree them in advance''. But these [[common law]] principles are ''about'' the contract, they are not rules ''of'' the contract. The [[contract]] itself it a smoldering husk.