A breach of contract is where the contract is broken and this happens when a particular term is not fulfilled without an excuse that is lawful. This could happen in various scenarios like a coworker not completing her job or an employee who does something that his job contract does not permit him to do.
Impact of a breach on a business
The breach of a contract is not a good thing and this wastes both time and money. Not every breach is equal and you deal with a contract breach you need to be aware of the same. The breaches are of four kinds. These are:
- Material breach – This is serious when one does not perform his duties as per the contract
- Fundamental breach – This is when the individual who is aggrieved can sue for the damages.
- Anticipatory breach – This happens when the party can say that the contract is broken when the other party does not execute his part of the contract.
- Minor breach – This is a partial breach. You cannot take to court here but you can sue the party for the monetary
To be able to build a case you need to have some facts established to take it to the breach of court. You must make sure that the contract has existed, the contract was broken, you lost money in the process, and that the defendant was actually responsible for your losses.
You need to know of the remedies for the breach of contract. You may end up just getting money for the contract being broken.
These could be the compensatory damages, liquidated damages, attorney’s fees, consequential and incidental damages, and punitive damages.
The remedial options are also mentioned in the contract. It is important to review the contract carefully and then look for the limitations of the contract.
Read more on how to deal with the breach of contract on last mile distribution.