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What is a Mutual Breach of Contract?

A breach of contract refers to the failure of one party to perform the obligations specified in a binding agreement with another party. When a contract is breached, the person at fault may face legal consequences. But not all breaches are the same.

A mutual breach occurs when both parties agree to breach the contract, typically due to a mutual understanding that the original agreement is no longer viable or beneficial. In these cases, both parties may agree on new terms or dissolve the contract altogether.

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