When you enter into a contract with a small business or large corporation, both parties must uphold their side of the bargain. Yet, what happens when one party does not follow the terms specified in the contract?
This situation could constitute a breach of contract, and the courts may require the negligent party to pay damages and restitution depending on the specific circumstances of the case.
What constitutes a breach of contract?
Several events may occur for there to be a breach of contract, according to The Balance. An anticipatory breach happens when one party alerts the other party that they will not be fulfilling their end of the contract. At this point, you can contact legal assistance and sue for breach of contract. While a minor breach occurs when one party ignores or misses a smaller detail of the contract, a fundamental breach involves a substantial problem that makes it difficult or impossible to complete the entire contract.
If a contract is fraudulent, formed illegally or is unreasonable, it may be a breach of contract as well.
What to keep in mind
When creating a contract, it is important to ensure the document includes detailed and concise terms of agreement. Make sure all parties are familiar with the terms of the contract and sign the document. Although oral contracts and handshake deals may exist, they make it difficult to determine what terms were actually agreed upon by both parties.
It is also helpful to collect information, through emails, texts and other communications, regarding the contract. If one party has an agreed-upon intention of performing an action, you can present these communications in court as evidence of a contract.