When two or more parties are bound by a contract, it can be important to consider carefully the action to be taken if another party is in breach. If the breach of contract is serious, the innocent party may have a right to terminate the contract and claim compensation for any losses suffered. However, if an innocent party terminates the contract without having the right to do so (for example, because the breach was not sufficiently serious), the innocent party himself might then be regarded as the one who has broken the contract and can find himself at the receiving end of a claim for compensation from the other.
Therefore, if you are considering the possibility of terminating a contract, we strongly advise that you take legal advice before doing so.