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There are often times when sponsors will seek to terminate their contract with a specific sportsperson following a misconduct and a repudiatory action.
For example, there was recent punching incident involving Super League rugby player Ben Flower, the Lance Armstrong embargo and, of course, Luis Suarez's biting incident.
Knowing your rights for such events is paramount. If common law rights can be excluded, parties will have to rely solely on the terms of their contracts, which may provide a far less advantageous remedy if the terms of the contract limit or exclude any amount of damages.
Disgraced cyclist Lance Armstrong
A 'repudiatory breach' is an actual breach of contract by conduct which is severe enough to go to the root of the contract. The legal test also takes into...