What Happens After a Breach of Contract?
You may or may not understand why some people choose not to uphold their end of an agreement. It may anger you that you did your part and the other person refuses to do their part. You may find yourself out time and money, neither of which are something you ever anticipated. When you and another party have a contract or agreement, and one doesn’t follow the terms, it is considered a breach. What is a breach, and what happens next? Take some time to review the information here to help you be prepared for the future.
When a Breach Occurs
A breach is a fancy legal word for a break, which is precisely what it means when one person fails to perform their duties under a contract. When a break occurs, whether it was done purposely to avoid following through, or whether it was purely an oversight, you need to know you have a legal remedy. A contract litigation lawyer in tampa is an excellent resource to turn to when dealing with someone who exited a contract without fulfilling it.
Four Types of Breaches
In the contract world, there are four main types of breaches that occur. Knowing what you’re up against may help you better understand the process and how you should proceed moving forward. The
- Material – the most common, deals with a blatant disregard for the contract.
- Minor – the least damaging, this usually deals with someone making a mistake
- Fundamental – often litigated because it means one party purposely didn’t follow through making the other party’s ability to follow through impossible
- Anticipatory – as a deadline approaches and the other party has not yet done anything to move forward, you expect them to be in breach
Remedies of a Breach
There is almost always a remedies section in a contract. This sets out how a violation will be handled, should it occur. It is set out in the agreement to help make contract disputes easier to handle, although this is not always the case. Most of the consequences are financial, while others may be more substantial such as forcing the faltering party to continue with the terms of the contract.
Your rights under a contract are enforceable if the other party does not step up and continue with their responsibilities. Get some help from an attorney who can fight for your rights under a legally binding contract and recover any money you’ve lost as a result of the other party’s actions or inactions.