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What constitutes breach of contract?

On Behalf of | Aug 16, 2021 | Business Litigation

Contracts probably form a major part of your life if you are a business owner. You likely have dozens of them with your various suppliers, distributors, customers, independent contractors, perhaps even some of your employees. As you likely already know, contracts are legal documents, binding on both parties. But what if the other party fails to live up to the terms of the contract?

FindLaw explains that this is the classic definition of breach of contract, i.e., that one party fails to perform his or her contractual obligations.

Breach of contract examples

Contract breaches can take many forms, including the following:

  • A vendor fails to timely deliver goods or services.
  • A vendor delivers substitute, substandard goods.
  • A customer fails to fully pay.
  • An independent contractor fails to complete a job.
  • The other contract party makes it impossible for you to meet a deadline.

Breach of contract remedies

When you file your breach of contract lawsuit, you have a choice of what to ask for in the way of a remedy. Common remedies include the following:

  • Money damages to compensate you for your losses
  • Specific performance by the breaching party of his or her contractual obligations
  • Restitution to restore you to your position prior to the contract
  • Rescission of the contract by the court
  • Reformation of the contract by the court

Breach of contract elements

To win your lawsuit against the breaching party, you must prove the following:

  • That a valid contract existed between you and him or her
  • That he or she breached one or more terms of said contract
  • That you suffered actual losses or damages because of the breach

As you might expect, breach of contract lawsuits can be very complicated and require a considerable length of time to resolve.