Contracts are designed to legally bind two or more entities in some sort of relationship. When one or more parties ignore the terms of the contract, then the consequences can be detrimental and highly damaging to the other parties involved. If you have entered into a contractual relationship with another individual and they have not adhered to the terms of the contract, then they are said to be in breach of contract and you may be able to pursue recompense for your loss or damage.
As a business entity, you may rely heavily upon the law and various contracts in order to conduct business, build your company, and grow wealth. When other business entities that you have entered into relationships with do not perform agreed-upon duties or adhere to your mutual agreement, then you may be able to pursue recompense in court.
WHAT IS INVOLVED IN A BREACH OF CONTRACT?
There are a number of types of contract breaches under the law:
Material breach: A substantial breach that brings harm to one of the parties involved in the contract. It allows the non-breaching party to sue for any damages and also back out of any performance on their part. There are certain stipulations that apply in order to determine how the failed actions actually affected the other party. Additionally it is important to look at how the breach of contract deprived or injured the other party to determine if a material breach occurred.
Minor breach: This is a partial breach that is typically less severe than a material breach. The harmed party may sue for damages, but they must keep up their end of the contract agreement.
Anticipatory breach: When the non-breaching party comes to a realization that the other party will soon fail to keep up their end of the contract, they may terminate the contract and pursue litigation for any damages incurred.
Typically any damages that are given to the non-breaching parties come in the form of money. On occasion the judge may award the innocent party with certain performances from the party that broke the contract that equals out to a certain sum of money.