Commercial Certainty in Contracts

In commercial contracts it is important that the parties (or their legal advisers) should be able to know immediately and unequivocally what their rights are in the event of a breach by the other party and to make their decisions accordingly. In certain types of commercial contract, certain conditions will be essential if the business contract is to function properly. This is especially true of commercial contracts in which one party depends on the next party in a chain of events. If the term broken is a condition, then the innocent party knows with certainty that the breach entitles him to terminate the contract immediately. The innocent party is then free to continue the business transaction with another partner

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