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What Is a Breach of Contract?

To understand a breach of contract, you have to understand a contract's parameters. A contract is a legally-binding agreement made between two parties, obligating one or both parties to specific duties. Contracts can be verbal or written. When they are verbal, they are difficult to define. If both parties mutually understand that the contract was binding and a party does not uphold their side of the contract, a breach has taken place. A breach of contract is a legal cause for action taken against a party; if convicted, they will be said to have committed a civil wrong.

There are four main types of contract breaches that it is possible to commit:

  • Minor Breach
    A minor breach is a type of breaking of promise that does not include failure to perform all the duties of the contract. The contract at its very foundation was not broken in whole, but rather in part. This is in direct contrast to a material breach.
  • Material Breach
    This type of breach is so substantial that it nullified the contract in whole. For example, if a business owner paid a contractor to install porcelain sinks in every bathroom, but the contractor did not complete any part of this action, whether by statement or by avoidance, then the business owner can file a breach of contract to either cancel the contract or even sue.
  • Fundamental Breach
    This can also be called a repudiatory breach and can warrant termination of contract or suing for damages.
  • Anticipatory Breach
    This takes place when the promising party refuses to uphold their side of the contract by the declaration of intent. This happens before the promising party refrains from upholding the contract and instead states that they do not intend to do so.

When individuals are the victim of a breach of contract, they normally don't call it that. They normally call it by what it feels like: a "broken promise," a "failed commitment," a "betrayal." A venue double-books your reservation. A travel agency promises you a certain package, but gives you a lesser one. An employer or business partner robs you of a benefit that you had been promised. You're contractually entitled to payment by a certain date, but the business keeps dodging you. These are all common betrayals—and are common examples of breaches of contract.

Failure to fulfill contracts is not just an inconvenience, either. Unscrupulous companies may breach a contract because they believe that you won't pursue litigation, essentially robbing you because they can. Entrepreneurs and homeowners alike can be financially ruined by a breach of contract. People's livelihoods and futures depend on contracts—they're the framework all businesses rely on. The heart of modern life relies on trusting in contracts. If people can't be trusted to keep their word, we all lose.

Pursuing litigation helps people recover what they lost, but our clients also find that it brings them closure. When organizations mistreat us or don't keep their word, it makes us feel powerless and unheard. Holding them accountable gives people their power back, as well as the material losses they suffered. Our goal is to, using legal terminology, "make you whole," to bring your life back to where it was before.

Filing a Breach of Contract Claim in Texas. Call (888) 493-1629 to Schedule a Free Consultation.

If you have entered into a legally-binding contract with someone, whether the relationship was business or personal, and the promising party did not uphold their side of the contract, you may be entitled to file a breach of contract claim. These can potentially cause a major detriment to the receiving party that they need compensation for. If you have entered into an agreement with someone and they breached that contract, then seek the help of a firm that deals with commercial litigation. At Arnold & Itkin, we have extensive experience in business litigation cases and know how to get our clients the compensation they deserve. To learn more about how we can help you, give us a call today at (888) 493-1629.

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