What Is a Breach of Contract?

Contracts are the cornerstone of business and personal transactions. They provide a framework for parties to define their rights and obligations. Sometimes, one party fails to fulfill their end of the agreement, leading to a breach of contract.

At the Sitterly Law Firm our attorney, Nick Sitterly, can represent your case in court. He can carefully review the contract terms and analyze the breach’s circumstances to pursue legal action effectively.

Below, we’ve explained what a breach of contract entails, the types of breaches, and how a breach of contract attorney can help.

Defining a Breach of Contract

A breach of contract occurs when one party fails to perform any of the terms agreed upon in a legally binding contract without a lawful excuse. Essentially, it’s a violation of the agreement’s terms and conditions.

Contracts can be written or verbal, but proving a breach is typically more straightforward with a written document that outlines the deal.

An example is if your insurance company has refused your commercial real estate or property damage claim without a just reason.

The consequences of a breach of contract can vary depending on the circumstances and the terms outlined in the agreement.

The non-breaching party may be entitled to monetary compensation to cover any losses from the breach. In specific contracts, the parties may include a provision specifying the amount of damages to be paid in case of a breach.

Depending on the circumstances, the non-breaching party may also have the right to terminate the contract. Sometimes, a court may order the breaching party to fulfill their contractual obligations as initially agreed upon.

Causes of a Breach of Contract

A breach of contract can occur for various reasons. Some common causes are outlined below.

Non-Performance

This is when one party fails to fulfill their contractual obligations in full, such as not delivering goods or services as promised. This can also include customers who have breached payment terms or other agreements.

Delayed Performance

Delayed performance is when a party doesn’t perform their obligations within the agreed-upon timeframe, such as a tenant not paying rent on time.

Defective Performance

This is when a party delivers goods or services that do not meet the quality standards specified in the contract–perhaps your suppliers have breached an agreement with you by delivering subpar quality goods.

Anticipatory Breach

An anticipatory breach occurs when one party indicates their unwillingness or inability to fulfill their obligations before the performance is due, making it clear that they will not meet their contractual commitments.

For example, you might have bought a house only to find out that it has already been sold to someone else. In this case, your sales contract has been breached.

Breach of Contract Types

Depending on the breach of contract type, you can pursue different legal actions.

Material Breach

This occurs when a party’s failure to perform a significant obligation under the contract substantially harms the other party. In such cases, the non-breaching party may be entitled to terminate the agreement and seek damages.

Minor Breach

Also known as a partial breach, this occurs when a party fails to fulfill a minor obligation under the contract. The non-breaching party may be entitled to damages but cannot terminate the contract.

Fundamental Breach

This type of breach is so severe that it undermines the entire purpose of the contract, making it impossible to achieve the intended objectives. The non-breaching party can terminate the agreement and seek damages.

How a Breach of Contract Attorney Can Help

Our breach of contract attorney specializes in handling cases related to breaches of contract and can help you decide the next steps for your case.

Assessing the Breach

Our breach of contract attorney will thoroughly review the contract terms and assess whether a breach has occurred. He can examine the type of breach and determine the legal implications.

Legal Analysis

Once a breach has been established, our breach of contract attorney can provide you with a detailed legal analysis of your rights and options. He will evaluate the financial losses incurred and gather evidence to support your claim for damages, whether they are compensatory, consequential, or punitive.

He will then explain the specific provisions of the contract that have been breached and the potential legal remedies available to you.

Demand Letters

Our breach of contract attorney can draft and send a demand letter to the breaching party on your behalf. The demand letter outlines the specific breach, the damages suffered, and the actions required to remedy the breach. This letter is a formal notice to the breaching party, indicating your intent to pursue legal action if the breach is not addressed.

Negotiation

Our attorney can negotiate with the breaching party or their legal representatives to seek a favorable settlement. He will advocate for your interests, aiming to achieve a resolution that compensates you for the damages caused by the breach and protects your rights under the contract.

Representation

If negotiation attempts are unsuccessful, our attorney can represent you in court. He will prepare and file the necessary legal documents, present your case before a judge, and argue for the appropriate legal remedies and damages.

So, if you’re having a business partnership dispute, a dispute with the members of an LLC, or a dispute with corporate officers, contacting our attorney for advice is the best way to receive assistance.

Our Breach of Contract Attorney Prioritizes Your Best Interests

At the Sitterly Law Firm, our attorney can advise you on the best legal actions to take next in the case of a breach. Nick Sitterly has the knowledge and expertise to properly assess contracts and potential breaches to ensure the best possible outcome for you.

Contact our breach of contract attorney today to start taking the next legal steps in your case.