What is Breach of Contract?
A breach of contract happens when a party doesn’t meet its contractual obligations without a valid legal reason. Any deviation from the agreed-upon terms and conditions of a legally enforceable contract is considered a breach of that contract. It can take various forms, such as failing to perform a promised service, delivering goods that don’t meet agreed-upon specifications, or not paying an agreed-upon amount of money. If a contract is challenged in court, it will be enforceable. Giving the victim what they were originally promised would typically be the remedy if it could be demonstrated that a contract was broken.
Key Takeaways:
- When either of the parties in a legally binding contract refuses to fulfill their part of the promise as per the agreed terms, that party is said to have committed a breach of contract.
- Breach of contract can happen to both written and oral contracts.
- In case a contract has been breached and the agreed terms are not followed, the parties have the option to either settle the dispute in court or among themselves.
- Different kinds of contract breaches exist, such as real or anticipatory violations and minor or substantial breaches.
Table of Content
- Kinds of Contract Breaches
- Dealing with Contract Breaches: Legal Issues
- Example of Breach of Contract
- Conclusion
- Breach of Contract- FAQs