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CIPS L5M3 Exam - Topic 1 Question 64 Discussion

Posted by Marta on Apr 11, 2026 at 03:24 PM

A breach which is so severe that it goes to the root of the contract is known as what?

Suggested Answer: A

This is a Fundamental Breach. Fundamental Breach and Major Breach are very similar- they're both really bad and can lead to damages and the termination of the contract. The difference is that a Fundamental Breach is so bad that it goes to the root of the contract - a breach so bad that the contract is basically worthless. For example if you make a contract with a supplier to have potatoes delivered but it turns out they don't sell potatoes, only apples, and they keep sending you apples instead of potatoes. This would be a fundamental breach because its something so fundamental to the contract that there's no point in the contract existing if there's a breach like this. Condition Breach and Essence Breach are made up words- they don't exist. P.44


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20 comments · newest first
DA
Darrel 2 months ago
D) essence breach sounds fancy, but I don't think it's correct.
KA
Karl 2 months ago
I thought it might be C) major breach, but now I'm not so sure.
SY
Sylvia 2 months ago
I agree with Alex. Fundamental breach is the term used in law.
LA
Larae 3 months ago
I was torn between A and B. But A feels right.
JE
Jerilyn 3 months ago
Yeah, that makes sense. It really goes to the core of the contract.
CH
Charlie 3 months ago
I think it's A) fundamental breach.
VI
Vivienne 3 months ago
A fundamental breach goes to the root of the contract.
LA
Lachelle 3 months ago
I thought it was a condition breach, but A makes sense.
DE
Desirae 4 months ago
Wait, is it really that serious? Sounds intense.
MO
Mona 4 months ago
Totally agree, it's definitely A.
MI
Mira 4 months ago
It's called a fundamental breach!
PA
Pamella 4 months ago
A fundamental breach is the correct term!
BA
Basilia 4 months ago
Wait, is that really what it's called? Sounds odd.
ME
Melodie 4 months ago
I thought it was a major breach?
NO
Noemi 6 months ago
Definitely A, no doubt about it.
JA
Jacinta 6 months ago
It's called a fundamental breach!
JO
Jody 7 months ago
I'm leaning towards D) essence breach, but I don't remember it being a common term in our practice questions.
EL
Eliseo 7 months ago
I feel like the term "major breach" was mentioned in our readings, but it doesn't sound quite right for this question.
CA
Carin 7 months ago
I remember discussing condition breaches, but I can't recall if that's the same as a fundamental breach.
LO
Lore 7 months ago
I think it might be A) fundamental breach, but I'm not entirely sure. We covered something similar in class.
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