What if you have invested into a project with another party to run an operation. However, because they had issued a termination notice, you were then unable to carry out your contractual obligations under the agreement and no reason was given by them. Can I sue them for wrongfully terminated contract? 

Q. What is the right to terminate?

Q. What qualifies as a material breach to the contract?

The following facts are considered by courts in determining whether a breach was material:

  1. Was there a failure of an essential contract element that led the non-breaching party to sign the contract?
  2. Did the breach affect the content of the contract, defeating the purpose for which the non-breaching party signed it?
  3. Did the breach affect a crucial subject that was central to the contract’s essence?
  4. Did the non-breaching party get significantly less or something different than what he had bargained for?

Q. What damages can I claim for a wrongfully terminated contract?