In your life, you’ll most likely become a party to a contract. Thus, you need to understand your role and the other party’s role in the contract. Additionally, you’ll need to comprehend the basics of the laws that cover contract breaches. In New York, there are numerous cases of breach of contract. While there may be several parties to an agreement, some may fail to meet the required obligations. So, what happens when a party fails to meet their required obligations? Here are some basics.
Types of breach of contract
A contract is a document for parties where each party has a role to perform. According to business & commercial law, most contracts are written for parties to deliver goods and services in exchange for money. Failure of any party to meet the required commitment is a contractual breach. Here’s more about the main types of breach of contract:
- A material breach of contract is where one party fails to meet their end of the contract, paralyzing the non-breaching party’s operations. This breach allows the other party to end the contract and pursue justice.
- A minor breach of contract does not totally paralyze the operations of the non-breaching party. The non-breaching party can pursue legal advice if they prove any financial loss.
- Actual breach of contract occurs when a party does not fulfill their required obligation in the set timeline.
- An anticipatory breach is where a party shows they will not meet their obligation before the set timeline expires.
Breach of contract lawsuits
When a party decides to breach a contract, the first requirement is to send notice to the breaching party. This is a written notice that informs the party about the breach. The breaching party may fail to provide a solution. If it fails, consider filing a lawsuit. In the lawsuit, you need to prove to the court the terms of the contract and that a party broke the contract. You also need to show the extent of the damage suffered.
Compensation is the best way of dealing with a contractual breach. If you suspect a breach of your contract, it may be in your best interest to contact an attorney as soon as possible.