Contracts are legally binding promises. When one party fails to meet their obligations, it may constitute a breach of contract. But not every breach leads to a lawsuit. Here’s what you need to know:
What Is a Breach of Contract?
A breach occurs when:
- A party doesn’t perform on time
- Fails to perform at all
- Delivers substandard work or goods
Types of Breaches:
- Material Breach – A significant failure that defeats the contract’s purpose.
- Minor Breach – Less serious; the contract can still be fulfilled.
- Anticipatory Breach – When one party indicates they won’t fulfill the contract ahead of time.
When Can You Sue?
You must show:
- A valid contract existed
- The breach occurred
- You suffered measurable damages
Remedies for Breach
- Compensatory Damages
- Specific Performance (forcing completion)
- Cancellation and Restitution
Alternatives to Litigation
Lawsuits are expensive. Consider mediation or arbitration as faster, cost-effective alternatives.
Pro Tip: Always document all communication and keep a signed copy of every contract.
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