CONTRACT LAW ā Fundamental Breach ā Definition of Fundamental Breach
Principle Statement
The expression 'fundamental breach' is used to denote a performance totally different from that which the contract contemplated or a breach of contract more serious than one which would entitle the other party merely to damages and which at least would entitle him to refuse further performance of the contract.
Ratio Decidendi (Source)
Per Edozie, JSC, in International Messengers (Nig.) Ltd. v. Pegofor Industries Limited (2005) NLC-1032000(SC) at p. 7; Paras CāD.
"The expression 'fundamental breach' is used to denote a performance totally different from that which the contract contemplated or a breach of contract more serious than one which would entitle the other party merely to damages and which at least would entitle him to refuse further performance of the contract."
Explanation / Scope
Fundamental breach occurs when performance deviates totally from what the contract intended. It is a serious breach entitling the innocent party to refuse further performance, not just claim damages. The principle applies to contract law. The rule distinguishes fundamental breaches from minor breaches. A fundamental breach strikes at the root of the contract.
