Contracts are used to enforce an agreement made between two parties, to help make sure that delivery of the product or service is completed. Failure to do so is considered to be a “breach of contract”.
Breach of Contract Explained
Breach of contract is the failure to perform the obligations of that binding agreement of a contract. A breach may occur if the party does not fulfill his contractual promise, refuses to perform the duties, if a party does something that is prohibited in the contract, or prevents the other party from performing its obligations.
Different Types of Breach of Contracts
- Material Breach – also called total breach. This type of breach of contract is any failure to perform and destroying the value of the contract for the non-breaching party. This permits the other party to the contract to either compel performance or seek damages. The damages would be the money payment adequate to cover economic losses resulting from the breach of contract.
- Partial Breach –also called immaterial or minor breach. This type of a breach of contract does not substantially affect the value of the contract for the non-breaching party. Thus, the non-breaching party is not entitled to an order for performance of its obligations, but only to collect the actual amount of their damages. It is merely a slight deviation from the bargained-for performance.
- Anticipatory Breach – also called constructive breach. This type of breach of contract occurs when one party decides to break a contract and will not take the action that he or she promised before the actual time of performance is due.
- Fundamental breach – also called repudiatory breach. This type of breach of contract permits the aggrieved party to terminate performance of the contract, and also entitling that party to sue for damages.
If there has been a breach of contract, there are different types of damages that can be sought. It is advisable to contact a lawyer to help you understand your legal rights and options, as well as review and evaluate your contract.
Additional Legal Information. Attorney at Law Ned Kimmelman. Serving clients throughout South Florida.
Please note that this article is for information purposes only and not intended as legal advice.