Ideally, contract relationships would always go as planned. Contracts guide most business relationships. In some circumstances, delays can occur and financial concerns can arise which may lead to disruptions to a contract relationship. When unexpected events interrupt performance of a contract, contract disputes may arise. As a result, it is important to understand what breach of contract is and the legal remedies available for breach of contract.
Contracts outline obligations between parties to an agreement. If the obligations outlined in the contract between the parties are not fulfilled, it may be considered a breach of contract. Contract disputes and breach of contract circumstances can arise when a party to the contract fails to timely perform the obligations of the contract, when the party fails to perform their obligations according to the terms outlined in the contract or fails to perform at all as required by the contract terms.
Contract breaches can be categorized as material or non material which can impact the remedies available for the specific breach of contract situation. Typical remedies for breach of contract include damages, such as financial damages resulting from the breach; specific performance of the contract terms; or cancellation of the contract, among other remedies that may be available depending on the circumstances.
Several different types of damages may be available but are unique to the situation so it is important to understand what remedies may be available. A breach of contract is no small concern for many businesses which is why it is helpful to understand how contracts are formed, performed and enforced.
Source: Smallbusiness.findlaw.com, “Breach of Contract and Lawsuits,” Accessed Nov. 20, 2016