Decoding Breach of Contract: What It Means and What You Can Do
A breach of contract occurs when someone fails to perform any term of a contract without a legitimate legal excuse. This can involve not completing a job, not paying on time, delivering inferior goods, or any other failure to fulfill the promised terms of the agreement.
When a breach of contract happens, the non-breaching party has several legal remedies available. These can include rescinding the contract, suing for damages, or demanding specific performance. Let’s take a closer look at these options.
Real-Life Scenario
Consider this scenario: Baker agrees to purchase a property from Brown, and both parties sign a contract. However, on the agreed upon closing date, Brown refuses to transfer the title to the property. Since this action isn’t supported by any special conditions in their sales contract, Brown’s refusal is considered a breach of contract. Baker has multiple options, such as:
- Rescind the Contract: Baker can cancel the agreement and get back his deposit.
- Sue for Damages: Baker can sue Brown for any incurred expenses, as well as any damages that resulted from the breach.
- Demand Specific Performance: Baker can take legal action to force Brown to fulfill the terms of the contract and complete the sale.
Frequently Asked Questions
What constitutes a breach of contract?
A breach of contract is any failure to fulfill the terms of an agreement without a lawful excuse. This could involve actions like not finishing the job on time, not making a payment, or any other deviation from the agreed terms.
What can I do if there is a breach of contract?
You can rescind the contract, seek compensation for damages, or demand specific performance, depending on the nature of the breach and the specifics of the contract.
What is specific performance in a breach of contract?
Specific performance is a legal remedy where the court orders the breaching party to perform their duties as specified in the contract. This is often used when monetary damages are insufficient to remedy the breach.
Can partial performance also be considered a breach of contract?
Yes, partial performance that does not meet the terms of the contract can be considered a breach. The impact depends on how significant the deviation is from the agreed terms.
How can I prove a breach of contract?
To prove a breach of contract, you must provide evidence that a contract existed, the terms of that contract, how the breach occurred, and the resulting damages or loss caused by the breach.
Related Terms: specific performance, default, rescission, legal damages, title conveyance.
