Business owners have to do what they can to protect their company. One way to do this is through contracts that outline the terms of deals with other businesses and individuals. Many contracts are successfully completed without any issues, but there are times when that’s not the case.
There are times when one party may not meet their obligations that are contained in the contract. At that point, they have breached the contract, which can come with some serious legal repercussions.
Not all breaches are the same
There are different types of contract breaches that can occur. The type is determined by the circumstances surrounding the breach and the way that it impacts the wronged party. Material breaches are the ones that have the biggest impact on the business that was wronged. These breaches go to the heart of the agreement and typically give the non-breaching party the right to terminate the contract and potentially seek damages.
Minor breaches, which are ones that leave the contract mostly intact, but there’s an element that wasn’t handled as it should have been. An anticipatory breach is one that occurs when one party alerts the other ahead of time that they won’t be able to meet the terms of the contract.
Some breach of contract cases require the court’s intervention to handle. These cases can lead to serious damages for the wronged party. A lengthy court battle can take focus from the company, so any business owner who’s been harmed by breach of contract should work closely with someone who can help them to protect the interests of the company.
