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What are some types of breach of contract in business?

On Behalf of | Apr 23, 2021 | Contract Disputes

Business owners in New York enter into many contracts. A business owner usually takes the time to make sure these contracts are valid. A valid contract contains three elements:

  1. An offer of value in exchange for a company’s goods or services.
  2. The offer was accepted by the other party.
  3. Each party provides an item of value.

If one or more of these elements is not completed it could lead to a breach of contract. There are many ways a breach of contract can occur including:

  • Failure to pay on time.
  • Failure to deliver the goods or services agreed on.
  • Failure to complete the job.
  • Providing inferior items or services.

Partial  and material breach of contract

Partial breach is where some but not all of the contracted terms have been completed. A person can usually only sue for damages in this situation.

Material breach is where a business destroys the value of a contract. For example, they may have used inferior materials that require the injured party to start the project again. The injured party can sue for damages and be relieved of their contractual obligations.

Fundamental and anticipatory breach of contract

Fundamental breach is a substantial breach where the majority of the contract has not been performed. In case of an anticipatory breach of contract, there is a failure to act, like not providing an item a ordered or not providing payment.

A legal professional who is skilled in business law can provide their client the help they need with the potential breach of a contract. They understand the laws that surround contracts and will work hard to make sure their client’s interests are protected.