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.