In a perfect world, people would get into an agreement, adhere to the terms and be pleased with the outcome. Unfortunately, our world isn’t perfect, and problems crop up that sometimes lead to delays and unkept promises. However, if the other party fails to fulfill the terms of the contract without a justifiable excuse, they’ve breached the contract.
Here are the different forms of contract breaches you may face:
A breach may be minor or material
A minor or partial breach of a contract may occur when the other party fails to perform part of their obligation as per the contract but in a minor way. For example, a supplier’s delivery may have been expected on Monday, but it doesn’t come through until Tuesday.
You may face a material breach if you end up with something different from what you specified in the contract. This type of breach is more severe than a minor one because the unmet obligations may cause substantial financial damages.
Breaches may be anticipatory or actual
An anticipatory breach occurs when one party informs the other that they won’t be able to meet the terms of a deal before they actually default. An actual breach happens when the other party simply fails to fulfill their obligations.
Contracts are an unavoidable part of life when running a business. Therefore, if you find yourself in a situation where another party has failed to fulfill their obligations, it helps to know the various types of contract breaches. While you may take different steps to solve the breach of contract, sometimes the only option would be to take legal action.