Question

Advice to someone who has entered into an agreement with a supplier and no longer wishes to purchase from the the supplier because the product is not the standard what is desired. But the customer already signed the agreement under the contract law. Advise customer is that a breach ?

Answer 1

Not every breach of contract gives the innocent party the right to terminate. The innocent party will only be discharged from future performance of the contract if the term breached qualifies as a condition, i.e. a vital term. Provided the term is a condition, the innocent party will be entitled to terminate the contract, no matter how minor the consequences of the breach. A breach of warranty, on the other hand, does not absolve the affected party from future performance, no matter how serious. The contract continues on foot, the parties remain obliged to perform their future obligations under the contract, and the only remedy for the breach is damages.

In the given case, as per the agreement supplier is unable to provide the product which shall meet the standard of purchaser desired which led to the breach of contract. Hence the customer can terminate the contract and it does not amount to the breach of contract.