Fundamental Breach Definition
In order for a party to be in breach of contract, they must fail to perform their obligations under the contract. This can be done either by not performing at all, or by not performing up to the standard that was agreed upon. A fundamental breach is a type of breach that is so serious that it goes to the root of the contract, and destroys the very purpose of the agreement. This type of breach allows the other party to cancel the contract and sue for damages.
