In a contract, both parties must fulfill certain conditions. If one party fails to meet their part of the agreement, it is called a breach of contract. A contract violation might be deliberate or unintentional, both of which can have legal consequences for you and your business.
Types of Breaches a Contract Lawyer Can Help You With
A breach of contract lawyer can help you determine if you have a case and how best to proceed. There are many types of contracts that you can breach, so let’s look at some examples of common breaches.
Minor/Partial Breach of Contract
A minor or partial breach is a failure to perform any of a contract’s many duties or obligations. For instance, an employer who fails to pay an employee’s wages on time commits a minor breach of contract.
When the other party discovers the breach, they must notify the other party in writing. The wronged party must give notice within a reasonable time after learning about the breach.
The injured party can decide whether to accept performance by the other party (if they offer) or insist on their right to recover damages caused by their unwillingness or inability to perform according to their agreement.
Material / Major Breach of Contract
A material breach of contract is a serious breach that goes to the heart of the agreement. It is defined as a failure to perform per the contract terms or failure to comply with an express term of the contract.
For example, if an employee was supposed to be at work for 8 hours per day for 5 days a week, it would be a material breach if she only showed up for 3 hours per day for 2 days.
The breach would make it impossible for her employer to continue operations as expected and justify her dismissal.
A material breach renders an entire contract void. This means that the original agreement no longer exists, and neither party has any further obligations towards one another under the terms of their initial agreement.
Anticipatory Breach of Contract
An anticipatory breach is a type of anticipatory repudiation. It occurs when a party to a contract threatens not to perform its obligations under the agreement or takes some action that shows an intent not to perform.
The threat or action must be serious enough to cause a reasonable person to conclude that the other party will not perform as promised.
Fundamental Breach of Contract
When one party breaches a term so crucial to the contract that the other party can no longer be expected to perform their share of the agreement, it is known as a fundamental breach of contract.
The breached party can then choose to treat the contract as terminated and sue for damages.
Actual Breach of Contract
It is considered an actual breach of contract when one of the contracting parties fails to fulfill their contractual commitments. This can be anything from not performing the work as agreed upon to not paying for the work that has been completed.
Summary
Breaches of contract can often lead to expensive legal battles, as the parties involved will probably seek damages for their losses. Consult an experienced breach of contract lawyer if you believe you have been a victim of a breach of contract.