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Does “failure to pay an amount due by the time specified in a contract” constitute a [[repudiatory breach]]? Usually failure to pay may be a specific [[event of default]] prescribing exactly what should happen — so this question is moot — but it may apply where you have a lender of a revolving credit facility, or a prime broker. | Does “failure to pay an amount due by the time specified in a contract” constitute a [[repudiatory breach]]? Usually failure to pay may be a specific [[event of default]] prescribing exactly what should happen — so this question is moot — but it may apply where you have a lender of a revolving credit facility, or a prime broker. | ||
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}} | ||