Section 535: Breach of contract deemed to occur

1) If any party to a contract fails to fulfill the obligation under the contract or gives a notice to the other party that he or she will not perform the act to be performed by him or her under the contract or his or her action and conduct demonstrate that he or she is incapable of performing the act under the contract, the party shall be deemed to have breach of contract.

2) If one party commits a breach of the contract pursuant to sub-section (1) or action or conduct of that party demonstrates non-performance of the contract in a material respect or demonstrates a material breach of the contract by the conduct or action of a party, the other party may rescind the contract by giving a notice to such a party.

3) In the case of the rescission of the contract pursuant to sub-section (2), the party rescinding the contract shall not be bound to perform the contract.