Which type of breach allows the innocent party to discharge the contract?

A repudiatory breach is a significant violation of a contract that goes to the very essence of the agreement. This type of breach occurs when one party indicates they will not perform their contractual obligations or when their actions make it impossible for them to fulfill those obligations. Because a repudiatory breach undermines the foundation of the contract, the innocent party has the right to treat the contract as terminated and can discharge the contract in response to this serious breach.

Discharging the contract effectively frees the innocent party from any further obligations under that contract and allows them to seek remedies for any losses incurred as a result of the breach. This stands in contrast to less severe breaches, such as a minor breach, where the contract typically remains in effect, and the innocent party may only be entitled to damages rather than termination.