What type of breach leads to a contract being terminated and the breach being actionable?

Study for the PEO PPE Exam. Use multiple choice questions with hints and explanations. Prepare thoroughly for your exam!

A breach of condition is a significant type of breach that goes to the root of a contract. When one party fails to fulfill a critical part of their obligations outlined in the contract, it undermines the contract's overall purpose. This type of breach allows the non-breaching party not only to terminate the contract but also to seek damages, making it actionable in a legal context.

In contracts, conditions are essential terms which, if broken, provide the basis for significant remedies. For example, in a sales contract, the delivery of goods in a specified condition could be deemed a condition. If the goods are not delivered as specified, the buyer may have the right to terminate the contract and pursue damages for any losses incurred as a result.

In contrast, breaches categorized as "Breach of Warranty," "Breach of Trust," or "Minor Breach" generally do not allow for termination of the contract or action for damages in the same way. Breach of warranty does not affect the fundamental aspects of a contract and typically leads only to claims for damages rather than termination. Breach of trust refers to violating fiduciary responsibilities which, while serious, involves other legal remedies. Minor breaches, often considered trivial or not fundamental to the contract's purpose, also

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