In order to understand the concept of ‘contract breach’, you first need to know what a contract is. A contract put in simple terms, is an agreement between two consenting parties which legally binds the two parties to the terms set in the contract. Both the parties are obligated to uphold the agreed upon terms and policies set in the contract. Contracts can be of two types. You can have a ‘verbal contract’ in which both the parties verbally agree upon the terms of the contract and there is no paper work involved. This type of contract often leads to misunderstandings and cause problems later on. The second type of contract, ‘the written contract’, in which all the terms and conditions are clearly established, is however, more reliable.
Now coming to what a ‘breach of contract’ is, if ether of the two parties fail to comply with the terms set in the contract, then they are said to have ‘breached’ the contract, and are thus convictable of crime by law. A breach of contract is basically a legal cause for action against the party which failed to adhere to the conditions set in the contract.
There are four basic types of contract breaches:
Minor Breach: If one of the two parties fails to comply by or fulfill part of the duties set in the contract then the type of contract breach is said to be minor. In this type of contract breach the contract is not fully discarded as only a part of the contract is breached.
Material Breach: This type of breach is the opposite of the minor breach and it means the total nullification of the contract as a whole. For example, if a builder has a contract with the flooring agency to do the flooring by a particular day and they fail to do any of it by then, then the contract is automatically canceled and the builder can sue the agency.
Fundamental Breach: If the breach of contract by the other party results in damage to you, then this type of breach is called a ‘fundamental breach’. In this case, you can sue the other party and can claim the compensation of the loss occurred due to the other party’s fault.
Anticipatory Breach: If the other consenting party refuses to uphold the contract by declaration of intent, then this type of breach is said to be an ‘anticipatory breach’. This happens when the other party makes their intentions clear ahead of time, before refraining from adhering to the contractual terms.
If you have been a victim of any of the above cases and if your contract has been breached by the other party, then you are entitled to file a breach of contract claim by seeking help from a Houston personal injury lawyer who deals with commercial litigation. By filing a case against the other party who breached the contract, you can recover any loses that the breach might have caused you.
For more information about contract breaches and Watson Law Firms Business & Commercial Litigation legal services.