Contracts are a vital part of our world today and without them it is unlikely that businesses (or society for that matter) could function like they do today. Unfortunately, these contracts are often broken and individuals and businesses are forced to deal with the legal consequences.
Contracts are often regarded as one of the most confusing areas of the law, so it’s no surprise that we here at KTF Law get questions about them on a regular basis. Below are brief answers to two of the most common questions:
“Are there different types of contract breaches?”
Yes, the four types of breaches are material, fundamental, anticipatory, and minor.
- Material Breach: This occurs when there is a failure to perform any duty outlined in the contract. Generally the most serious, this breach allows the injured party to seek damages.
- Fundamental Breach: This violation occurs when one party does not follow through on an item so fundamental to the contract that it prevents the distressed party from following through on their end of the deal.
- Anticipatory Breach: This type of breach happens when it becomes clear that one party will not be able to fulfill their end of the deal within the specified time frame.
- Minor Breach: This occurs when a contract is completed on time but there are minor discrepancies between the terms and the actual results that were delivered.
“What can be done if the other party broke our contract?”
In all types of contract breaches, there are remedies available to you. Many times this will involve money to amend for what was lost and the damages that occurred as a result. Other potential remedies not involving money include:
- Specific Performance: A court order is drafted for each individual to complete the initial contact.
- Rescission: The contract is canceled, money returned, and the issue is dropped completely.
- Reformation: Contract is re-written to better fit the actual intention of the parties’ wishes.
Contract breaches are among the most common cases heard in small claims courts today. The first step to avoiding a breach of contract is making sure you have a clear, sound contract. Contact the contract lawyers at KTF Law to learn more about your options under a breach of contract case or for assistance in drafting your next contract.