What is the test for terminating a contract?
Manitoba, Canada
The following excerpt is from Waymarc Industries (Alberta) Ltd. v. Kroczak, 1994 CanLII 16904 (MB QB):
Where one party has breached a condi tion of a contract, the other party is put to his election as to whether to treat the con tract as continuing or terminated. In the event that he chooses to treat the contract as terminated, he is relieved from his obliga tions to perform under that contract and is entitled to sue for damages (see Fridman, Law of Contract in Canada (2nd Ed. 1986), at p. 525, and Johnson v. Lambert (1956), 17 W.W.R.(N.S.) 545 (Man. C.A.)).
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