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4 kinds of contract breaches

On Behalf of | Dec 5, 2022 | Contract Disputes

A contract lets you know you and another party have a legally-binding arrangement that should be followed to the letter. This could mean one party is providing a product or service to the other or there’s a transfer of property, for example. Contracts usually specify how a service should be done or the product delivered and a time frame. 

When the specifications of a contract aren’t met, it may be considered breached. There are four kinds of contract beaches to watch for. Here’s what you should know

Minor or material 

A minor breach of contract means a product or service was provided by its due date, however, something that was in the contract is missing. This could mean there was a shipment of apples but half of them were undelivered. 

A material contract breach could mean that a product or service was provided however the wrong product or service was done. For example, a shipment of apples was requested and, instead, there was a shipment of oranges. 

Actual or anticipatory

An actual contract breach occurs when someone refuses to perform their duty according to their contract or finish their obligations.

An anticipatory breach of contract happens when it’s clear a party is going to fail their contractual obligations by their due date. Otherwise, a party may notice they won’t finish by the terms set in their contract and announce it in advance.

When dealing with a contract breach, it may be in your best interest to reach out for legal help to better understand how someone breached their legally-binding contract.