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CIPS L5M3 Exam - Topic 1 Question 64 Discussion

Actual exam question for CIPS's L5M3 exam
Question #: 64
Topic #: 1
[All L5M3 Questions]

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

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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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Carin
2 days ago
I remember discussing condition breaches, but I can't recall if that's the same as a fundamental breach.
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Lore
7 days 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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