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Breaches, disputes & legal proceedings

Fundamental Breach

A severe breach of the lease agreement that entitles the harmed party to terminate the contract and seek damages, such as repeated non-payment of rent or intentional property damage.

Under the law, a fundamental breach strikes at the core of the lease agreement. Examples include withholding rent for three consecutive months, causing severe and deliberate damage to the property, using the apartment for illegal or prohibited purposes, or failing on the landlord's part to provide a habitable living space. Such a breach gives the affected party the right to cancel the contract.

Before seeking contract cancellation, the aggrieved party must give the defaulting party a chance to fix the issue—known as a cure period. If the breach remains unresolved after 30 days, they may file a lawsuit requesting lease termination and monetary damages. A fundamental breach can lead to major legal consequences, including compensation claims, court costs, and the loss of financial guarantees.

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The information in this glossary is for general informational purposes only and does not constitute legal advice. In the event of a dispute or a specific legal question, consult an attorney specializing in tenancy law.

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