What Constitutes Breach of Contract?

 

 

You finish a job contracted to you but you never receive a check. The customer did not follow through on his end of the contract, leaving you without payment for a job or service that you performed.

 

You hired someone to perform a job, their work is substandard, yet they demand payment. One of the most common court cases heard are that of breach of contract. There are many situations that can justifiably be referred to as breach of contract. It can happen when an employee fails to perform a required portion of his job. An employer may be in a breach of contract when he does something that is not permitted due to a contract he may have signed as a condition for his employment. If you entered into a contract and you believe that contract was not completed or have questions concerning the validity of the contract, a business contracts lawyer Folsom, CA relies on can assist you in determining the legitimacy of the document.  

 

Breach of contract is defined as a failure to perform a specified term in a contract without a lawful, justifiable reason. Small businesses are especially affected by a breach of contract suit as it costs them money and time to pursue or defend.

 

There are four basic scenarios that may constitute breach of contract.  They are:

 

  1. A fundamental breach allows the affected individual to void the contract and move forward to sue for damages. An example of a fundamental breach would the purchaser of a car receives the car in a totally different condition than was specified in the contract.   The purchaser can terminate the agreement because of non-performance by the seller.
  2. A material breach is one of the most serious beaches as it permits the injured individual or business to pursue damages in court. A contractor completes his job yet the client refuses to pay him.  
  3. An anticipatory breach states that one person believes a contract has been broken when it is evident that the other party will not be able to fulfill his end of the contract in the time specified in the contract.
  4. A minor breach is when a contract is completed, however the performance is less than expected.  

 

In any case, in order to create a legitimate court case, you must be able to confirm that:

 

  1. A contract did, indeed, exist;
  2. The contract was broken;
  3. Money was lost because of the broken contract;
  4. The person or business you are bringing the charge against was responsible.

 

Before deciding if you would like to pursue legal action for breach of contract, contact an attorney. They will examine the original contract and look for any restrictions or specifications to avoid inadvertently waiving any contract remedies.

 

At Yee Law Group, we’re here to help you with your business law and contracts needs.