As a business owner, you rely on contract law for most of your activities. You have contracts with staff, customers, vendors and service providers.
For the most part, these contracts strengthen the legal rights of all parties and as long as nothing goes wrong, you may barely even notice them. Unfortunately, things can go wrong and contracts can be breached.
A breach of contract could end up costing your business if not remedied efficiently. Outlined below are some of the more common types of contract breaches.
Minor or partial breaches generally occur when the contract has been fulfilled, but not the required standards. For instance, if you have been guaranteed supplies on a set date, and they arrive a few days later, then this would be a minor breach of contract. With effective communication, both parties are often able to find a suitable remedy. However, minor breaches might still be actionable.
Anticipatory breaches occur when one party indicates that they have no intention to fulfill their obligations. However, this type of breach doesn’t necessarily need to be intentional. One party may have just guaranteed to deliver something that is not possible for them to do.
A material breach means that one party has received something significantly different than what was agreed upon. For instance, a product or service may not have matched the description outlined in the contract.
If you’re caught up in a contract dispute, it could benefit you to seek legal guidance. This will help you find a solution and potentially save your company a lot of money.