What is the legal test for repudiation of a contract?
British Columbia, Canada
The following excerpt is from Cao v. Wei, 2011 BCSC 443 (CanLII):
The legal test for repudiation of a contract arising out of fundamental breach is not in dispute. Counsel for both parties cited and relied on Smith v. Lau, 2004 BCCA 443, at para. 41 (per Madam Justice Levine, dissenting in the result), where the law was summarized as follows: a fundamental breach is one going to the very root of the contract; where one party fails to perform the very purpose for which the contract is designed so as to deprive the other of the whole or substantially the whole of the benefit which the parties intended should be conferred and obtained, such breach goes to the very root of the contract, and the party not in default is absolved from performing his end of the contract.
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