Understanding a Breach of Contract

Contracts have been the backbone of every business for decades. They set out the terms and conditions for agreements between parties, and they ensure that everyone involved knows exactly what is expected of them. But what happens when one party fails to live up to their end of the bargain?

What is a Breach of Contract?

When one party to a contract does not fulfill their obligations under the agreement, this is known as a breach of contract. This can happen when one party fails to perform their duties, does not meet the agreed-upon timeline, or violates the terms of the contract in some other way.

To prove a breach of contract, you must show that while both understood they were under an agreement, you held your side while the other side did not, resulting in you suffering damage.

Breach of Contract Types

The two most common types of contract breaches are material and minor (immaterial). A material breach of contract is a failure to fulfill some major obligation under the agreement. This can include things like failing to deliver a product or service, not completing a project on time, or failing to meet quality standards. A minor breach (also called an immaterial breach) is a less serious failure to perform an obligation under the agreement.

There is also an anticipatory breach of contract, which occurs when one party tells the other before the contract has ended that they will not be able to fulfill their agreement. If you sustained any of the breaches, a remedy may be available. To learn more about the types of contract breaches and what you can recover, contact a business law attorney.

Breach of contract is a concept that business owners should be aware of to protect their interests. They are common. Understanding the basics of breach of contract under business law can help you recognize when one has occurred, allowing you to take steps to remedy it.

Additionally, being familiar with these concepts from the outset can also help you prevent such issues from occurring by drafting contracts that are clear and legally enforceable.

Contact Just Right Law today for a consultation.

Starting a business in Michigan comes with its fair share of pivotal decisions. Among the most consequential is the type of business entity you opt for. This choice can profoundly impact your venture’s legal, financial, and operational dimensions. At Just Right Law, we pride ourselves on delivering tailored legal solutions that empower our clients to make informed choices​.

Sole Proprietorships

Sole Proprietorships are the most straightforward entities to establish. They require no formal registration, and you can operate under your own name or a DBA. The primary advantage is the ease of starting up and having direct control over business affairs. However, the downside is the unlimited personal liability you bear, coupled with limited avenues for fundraising.


Partnerships, on the other hand, are arrangements between two or more individuals. While some partnerships might necessitate state registration, the essence lies in the mutual agreement. The combined skillsets and resources can be a boon, facilitating shared responsibilities. That said, partners need to be wary of the fact that they could be personally liable for all of the partnership’s debts and the potential for internal disputes.


LLCs (Limited Liability Companies) strike a balance between simplicity and formality. To set up an LLC, one must file articles of organization with the state. In addition, you should draft an operating agreement, but there is no requirement to do so or register it with the state. The primary benefit of an LLC is that you will be protected from personal liability for business debts – provided you follow certain formalities. Liability protection is a significant draw, along with management flexibility and possible tax benefits. However, they come with their own set of challenges, including more paperwork than sole proprietorships and potential self-employment taxes.


Lastly, Corporations are more complex entities, requiring founders to file Articles of Incorporation, establish bylaws, and appoint directors. They are favored for their limited liability provisions, the ease of raising capital, and the potential for an enduring existence. But they also have their downsides, like the risk of double taxation and a higher regulatory burden.

Call Us Today to Schedule a Free Case Evaluation with a Michigan Business Lawyer

The business entity you choose should align with your vision, risk appetite, and financial considerations. At Just Right Law, our commitment is to ensure your business’s foundational decisions are made with clarity and conviction, rooted in open, honest, and frank communication. To schedule a consultation with a business lawyer in Michigan, call our office today at (248) 519-2313 or contact us online.