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ARTICLE · 14 JULY 2009

It´s Over! When (And How) Can You Terminate A Contract?

Clayton Utz
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The right to terminate a contract does not automatically arise if there is a contractual breach. The existence of the right, at common law, depends on the classification of the term breached.

AustraliaCorporate/Commercial Law
Luke Buchanan
Luke Buchanan
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Key Points:
The right to terminate a contract does not automatically arise if there is a contractual breach. The existence of the right, at common law, depends on the classification of the term breached.

Contracts made during the boom times often don't look so rosy when there's a downturn, and some might start looking for a way out. When can you terminate a contract?

The High Court recently had to consider this very question, in Koompahtoo Local Aboriginal Land Council v Sanpine Pty Ltd (2007) 241 ALR 88. It explained the different types of terms in a contract (condition, warranty and intermediate) and when a breach of those terms will allow the other party to terminate at common law.

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