Understanding Breach Of Contract and Knowing Your Options

by | Apr 15, 2022 | Uncategorized

As put by Investopedia, a breach of contract “is a violation of any of the agreed-upon terms and conditions of a binding contract. The breach could be anything from a late payment to a more serious violation such as the failure to deliver a promised asset.”

4 Types of Breach of Contract You Need to Be Aware Of

Minor breach is a situation where the deliverable of the contract was received by the other party, but a party failed to fulfill some part of their duty or responsibility.

Material breach occurs when one party receives less benefit or a different result than what was defined in a contract.

Actual breach is a breach that has already occurred where a party refused to fulfill their obligations by the due date or they have performed their duties incompletely or improperly.

Anticipatory breach is something that has not yet occurred, but one of the parties has indicated that they will not fulfill their obligations under the contract.

Learn more about these different breaches from Contract Works.

What To Do When A Breach Occurs

Before we mention what you can and should do in this situation, a breach of contract can be from verbal commitments, not just written. However, always try to get something in writing to easily dispute potential claims because verbal commitments often turn into a “they said, I said” situation.

First, try to solve the situation in nonlegal methods if possible. If this doesn’t work, the party that has been wronged can bring up a lawsuit against the breaching party. There are 3 remedies you can seek:

  1. Damages: you can ask for compensation to return to your financial standing before the agreement and/or additional compensation if suffering has occurred.
  2. Specific performance: a judge can require the party at fault to complete the agreed-upon services.
  3. Cancelation and restitution: first, the contract will be canceled. Then, the wrong party can sue for compensation similar to #1. 

If something like this is happening to you, don’t hesitate to reach out using our contact form or by calling us at (513) 961- 6200 for help.

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