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What are the various types of breach of contract?

On Behalf of | Jul 17, 2016 | Contract Disputes |

The matter of breach of contract is common in the world of business. While some breaches may cause little to no rift in a business agreement or its process, some breaches of contract are so substantial that they result in a complete dissolution of any existing business relationship. If you use contracts often, it may be well worth your time to become knowledgeable about the various types and their remedies.

Any type of breach relates to a violation of an agreement or a failure to complete or perform an agreed-upon obligation. These breaches may be in relation to one specific area of an agreement, a partial or a whole breach. Any party involved in a contract can breach a contract. However, without excuse or justification, there may be legal or financial ramifications.

Contracts are typically specific to the type of business in which both parties are involved. In these cases, a breach of contract may be in relation to a party’s role in the agreement, such as a trustee is to a trust. While these breaches may be easily understood, there are a few cases of breach of contract that are a bit more difficult to identify.

When one party finds it more profitable to breach a contract and pay damages than to meet their obligation under the contract terms, it is called an efficient breach. When a breach of contract is done preemptively before the other party has a chance to, it is called an anticipatory breach. The ability to sue for damages in both an anticipatory and efficient breach may vary from case to case. However, in the event of a material breach, it is believed to be so substantial that it automatically gives the non-violating party the right to sue for damages.

Typically, a breach of contract is only a partial breach. In these cases, damages for the breach may be awarded, but there may be no grounds to cancel or suspend or either party’s obligations. In contrast, a total breach is substantial enough for both parties to cancel the contract and seek damages through a lawsuit. If you are dealing with a partial, total or material breach of contract, you may be able to sue for damages with the help of an experienced business law attorney.


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