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Maryland Code, Commercial Law § 22-802

Current as of December 31, 2021 | Updated by FindLaw Staff

(a) An aggrieved party may cancel a contract if there is a material breach that has not been cured or waived or the agreement allows cancellation for the breach.

(b) Cancellation is not effective until the canceling party gives notice of cancellation to the party in breach, unless a delay required to notify the party would cause or threaten material harm or loss to the aggrieved party. The notification may be in any form reasonable under the circumstances. However, in an access contract, a party may cancel rights of access without notice.

(c) On cancellation, the following rules apply:

(1) If a party is in possession or control of licensed information, documentation, materials, or copies of licensed information, the following rules apply:

(A) A party that has rightfully refused a copy shall comply with § 22-706(b) of this title as to the refused copy.

(B) A party in breach of contract which would be subject to an obligation to deliver under § 22-618 of this title shall deliver all information, documentation, materials, and copies to the other party or hold them with reasonable care for a reasonable time for disposal at that party's instructions. The party in breach of contract shall follow any reasonable instructions received from the other party.

(C) Except as otherwise provided in subparagraphs (A) and (B) of this paragraph, the party shall comply with § 22-618 of this title.

(2) All obligations that are executory on both sides at the time of cancellation are discharged, but the following survive:

(A) Any right based on previous breach or performance; and

(B) The rights, duties, and remedies described in § 22-616(b) of this title.

(3) Cancellation of a license by the licensor ends any contractual right of the licensee to use the information, informational rights, copies, or other materials.

(4) Cancellation of a license by the licensee ends any contractual right to use the information, informational rights, copies, or other materials, but the licensee may use the information for a limited time after the license has been canceled if the use:

(A) Is within contractual use terms;

(B) Is not for distribution and is solely part of measures reasonable under the circumstances to avoid or reduce loss; and

(C) Is not contrary to instructions received from the party in breach concerning disposition of them.

(5) The licensee shall pay the licensor the reasonable value of any use after cancellation permitted under paragraph (4) of this subsection.

(6) The obligations under this subsection apply to all information, informational rights, documentation, materials, and copies received by the party and any copies made therefrom.

(d) A term providing that a contract may not be canceled precludes cancellation but does not limit other remedies.

(e) Unless a contrary intention clearly appears, an expression such as “cancellation”, “rescission”, or the like may not be construed as a renunciation or discharge of a claim in damages for an antecedent breach.

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Cite this article: FindLaw.com - Maryland Code, Commercial Law § 22-802 - last updated December 31, 2021 | https://codes.findlaw.com/md/commercial-law/md-code-coml-sect-22-802/

Read this complete Maryland Code, Commercial Law § 22-802 on Westlaw. Westlaw subscription required.

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