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What to understand about breach of contract

| Aug 18, 2020 | Business Law And Litigation |

If a person fails to live up to a contractual obligation, he or she may be in breach of contract. The circumstances surrounding the breach may determine what type of relief a person or entity might be entitled to. Let’s take a look at the different types of breaches that may occur and how to prove that one took place.

The different types of contract breaches

If a party to a contract failed to deliver a good or service by the date specified in the document, it will likely be referred to as a minor breach. However, in the event that a good or service was not delivered at all, it would likely be seen as a material breach. In some cases, a lawsuit may be filed because of an anticipated breach of contract. This occurs when one party to a deal states ahead of time that it can’t or won’t live up to its obligations.

How to show a breach occurred

A plaintiff who claims that a contract was breached must first show that the contract was valid. Generally speaking, deals are easier to enforce when their terms are put into writing, and a written contract is typically required if it involves goods worth more than $500 or if the deal lasts for a year or more. A deal may be null and void if it was signed under duress or if was otherwise created in bad faith.

A contract dispute may result in spending significant time in court and significant amounts of money on legal and other fees. It may also strain important relationships with friends, colleagues or anyone else who is involved in the dispute. If you have a contract dispute, a business law attorney may be able to help you resolve the matter in a timely and amicable manner.

Also, if you consult a business law attorney before entering into a contract, terms can be added to the contract which may minimize the chance of a dispute, and give you a stronger position if a dispute does arise.

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