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Inside Internal Controls

News and discussion on implementing risk management

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contractual agreement

Breach of contract and repudiation: Affirm or accept the repudiation, not both

One of the more difficult issues in contractual disputes is sorting out what rights and obligations continue to exist when a party to a contract breaches the terms of the contract. Broadly speaking, the party that is in breach of a contract is refusing to perform duties or obligations under that contract and, as a result, is repudiating the contract.

 

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What one has earned – Courts impose compensation where parties fail to solidify a contract

While quantum meruit is a method by which a party who has given value to another to their own detriment may seek redress, the better alternative remains for parties to arrive at clearly agreed upon terms and to commit those terms to writing.

 

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When a party breaches a settlement agreement: Being made whole

A party that breaches a settlement agreement risks both being forced to complete the agreement and having to pay the legal costs of the party seeking to enforce the agreement.

 

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