Under Section 6 of the Contracts (Remedies for Breach of Contract) Law, a fundamental breach is one that a reasonable person would not have entered into the contract had they foreseen the breach and its consequences. A breach may also be defined as fundamental if the parties expressly agreed in the contract that a particular act or omission would be considered fundamental.
However, a clause that labels a wide and undifferentiated list of acts as “fundamental breaches” will not necessarily be enforceable unless its terms were reasonable at the time the contract was formed.
Unlike the mechanism governing “regular” breaches, Section 7(a) provides that in the case of a fundamental breach, the injured party may cancel the contract immediately and without conditions.
A contract attorney will ensure that the agreement you sign provides strong protection in the event of a breach and that it includes practical mechanisms for addressing the breach, stopping it, or bringing the contractual relationship to an end.
If you believe that an agreement you are party to has been breached, whether through a regular or a fundamental breach, it is crucial to seek legal advice as soon as possible. Early guidance may help remedy the breach and minimize potential damages. If the circumstances require legal action, you should consult a civil–commercial litigation attorney, who will represent you in the dispute and accompany you from the moment the breach arises until the matter is resolved.