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How is she breaching the contract?
I don't have all the facts yet. Are you saying she refused to provide care when the children were entitled to go back after they were symptom-free of some illness for 24 hours?
Yes. Then you are correct and the daycare provider is in breach of her contract with you. She had an obligation pursuant to the contract to allow your children back into the home for care once they were symptom-free for 24 hours. As such, she cannot now say the contract still applies and that you need to provide notice before removing your children when she has breached the contract. Breaching the contract has ended it.I suggest you tell her this and threatening a lawsuit if she doesn't agree.