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What constitutes breach of a business contract?

| Jun 1, 2020 | Civil And Business Law |

Many people in Warrenton work for large businesses in various industries, including the technology industry, construction industry and medical industry. These businesses bring a lot of economic prosperity to the Warrenton area, and the backbone of these major enterprises is often the simple contract.

However, are business contracts really that simple? Many businesses have many contracts that allow them to keep their enterprise running. When two parties agree to a contract, they generally think they know what they are agreeing to, even if the contract is a complex one. However, one misstep could lead to claims of breach of contract and subsequent litigation.

What are the elements of breach of contract?

There are four elements that must be met to prove breach of contract. First, the contract itself must be valid. It must have a legal purpose, the parties must have mutually agreed to the terms, something of value must be exchanged between the parties, and the parties to the contract must be competent and must have entered the contract freely.

Second, the plaintiff must prove the contract was breached. There are several types of breach of contract. A material breach is one that is so major that the injured party should be excused from having to fulfill their duties under the contract. A partial breach is still a breach, but the injured party is not excused from having to fulfill their part of the agreement. An anticipatory breach occurs when the injured party believes the other party to the contract will not fulfill their duty under the agreement because they have done (or not done) something to show they do not intend to follow the contract.

Third, to prove breach of contract, the plaintiff must have fulfilled their role under the contract given the perimeters of the breach. Finally, to prove breach of contract, the plaintiff must have provided the breaching party with notification, generally in writing, of the breach prior to suing.

Seeking assistance if you are involved in a breach of contract claim

Ultimately the fulfillment of solidly-drafted contracts is essential to the health of a business. It can help to ensure the contract is clearly written and understood from the get-go. Many times, a well-drafted contract can prevent breaches in the future. However, even the most comprehensive contract can be breached.

If you are having problems with a contract and believe litigation is necessary, or if you have been sued for breach of contract, you will want to have an attorney by your side. Business law attorneys understand how to draft lawful, comprehensive contracts and how to pursue a claim of breach of contract as well as defend against one.