If a contract contains a fundamental breach, what can the buyer do?

In the context of real estate contracts, a fundamental breach occurs when one party fails to uphold a significant aspect of the agreement, rendering the contract fundamentally flawed and the intended purpose unachievable. Such a breach gives the aggrieved party, in this case, the buyer, the right to take decisive action.

When a contract contains a fundamental breach, the buyer can cancel the contract immediately. This is because the fundamental breach affects the core of the agreement, allowing the buyer to terminate their obligations and seek remedies, such as pursuing damages or finding an alternative property. Cancellation reflects the gravity of the breach, as it undermines the buyer's trust in the contract's validity.

Other actions, such as insisting on a price reduction or negotiating changes to the terms, do not fully address the severity of a fundamental breach. The buyer is not obliged to complete the contract when it is fundamentally breached, as an obligation exists only when the contract's fundamental aspects are honored by both parties. Thus, the immediate cancellation of the contract is the appropriate and justified response in this situation.