Contract law (2022): Breach of contract (Part two)

Types of breach.

Contracts often use wording other than repudiatory breach to describe a type of breach of contract. These contractual terms include material breach, fundamental breach, substantial breach, serious breach. These alternative wordings have no fixed meaning in law but are interpreted within the context of the contract that they are used. For that reason, the meaning of the different terms varies from case to case. Possible interpretations of their meaning include "repudiatory breach", and "serious breach, but not as serious as a repudiatory breach".

Trivial breach.

A trivial breach is one that does not meet the standard for designation as a material, serious or substantial breach.

An Arizona Supreme Court decision in a 1990 commercial retail lease case noted that "the overwhelming majority of  jurisdictions... hold the landlord's right to terminate is not unlimited. We believe a court's decision to permit termination must be tempered by notions of equity and common sense. We thus hold a forfeiture for a trivial or immaterial breach of a commercial lease should not be enforced."

In Rice (t/a The Garden Guardian) v Great Yarmouth Borough Council (2000), the UK Court of Appeal decided that a clause which provided that the contract could be terminated "if the contractor commits a breach of any of its obligations under the contract" should not be given its literal meaning: it was considered "contrary to business common sense" to allow any breach at all, however trivial, to create grounds for termination.