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What kinds of contract breaches are there?

On Behalf of | Sep 9, 2022 | Business Litigation

Nobody likes when their contract agreements aren’t met. The consequences of a contract breach can be immense and might put your business in jeopardy. 

Contract breaches can cost significant fees and could cause your business to have a bad name. If you’re planning to avoid a contract breach or need to know when someone you work with breached their contract, here’s what you should look for:

A minor and material breach of contract

A contract breach can happen in one of two ways. Depending on what was done a contract may be considered a minor or material breach:

  • Minor breach: this contract breach occurs when the requested product or service isn’t brought by the contract due date. This could look like a crate of produce failing to deliver or a plumbing issue left unfixed.
  • Material breach: on the other hand, a contract breach may occur when a product or service is provided, however, the wrong product or service was provided. This could mean ordering a crate of tomatoes and having potatoes arrive instead or hiring a plumber to fix a sink and instead they work on a toilet.

An actual or anticipatory breach of contract

A minor and material breach may also fall under two categories. A contract breach may be an actual or anticipatory:

  • Actual breach: If a party refuses to continue service or delivery according to a contract, then it may be considered an actual breach.
  • Anticipatory breach: Alternatively, you may have been given advanced notice that the other party cannot or will not fulfill their obligations.

It’s not always easy to come to an agreement after a contract breach. You may need legal help to step in and guide you on what to do next to best protect your interests.