Running a business is hard work, especially if you regularly require the assistance of third-party companies to complete projects and fulfill obligations. Contracts provide you with the clarity and reassurance that everything you need from your business partners will go smoothly.
But things happen that can cause delays, miscommunication, or other problems and result in contractual expectations not being met. You’re frustrated and disappointed in the situation. What can you do?
It’s useful to understand the three types of contract breaches that can occur before you consider pursuing legal action.
- Material breach is when the breach is so significant that it renders the contract pointless and provides grounds to cancel the agreement or sue for damages. It’s important to note that in some instances, a material breach may only allow you to suspend your contract instead of entirely cancelling it.
- Partial breach occurs when the breach is minor such as delivering items later than requested but not so late that it significantly disrupts your business schedule. In these situations, you may be able to sue for damages, but you may not be able to cancel or suspend the contract.
- Total breach is when the breach is so significant that it affects your company’s fulfillment of services or products. This type of breach allows you to pursue complete cancelation of the contract as well as sue for damages.
Any of these types of contract breaches are reasons to be concerned. You want your business to function efficiently, and you expect your business partners to hold up their end of the deal. If you find yourself in a situation where another party does not fulfill the terms of your contract, you may have grounds to pursue legal remedies.
There are different avenues you can take after a breach of contract, such as pursuing damages, cancelling the contract or requesting that the courts order the breaching party to fulfill its obligations. An experienced attorney can help you in determining the best option for your situation.