The Four Types of Breach of Contract

Breach of contract is a serious offense that could lead to expensive lawsuits, or if the contract was with a government agency there could be additional legal percussions. Sometimes it is not clear to an individual or company whether or not they are in breach of contract. There are four different types of breaches of contract that could affect you.

Minor Breach

A minor breach of contract is when one party to the contract does not perform all of their duties or obligations according to the contract, but they do not violate the entire contract. Essentially, this means that someone didn’t do one piece of what they claimed they would do in the contract.

Material Breach

A material breach of contract is similar to a minor breach of contract, in that just one duty or obligation outlined in the contract could be violated. A material breach of contract is more severe than a minor breach because in a material breach of contract, the obligation not met has a substantial effect on the contract as a whole.

Fundamental Breach

A fundamental breach of contract is similar to a material breach, but it is considered to be much more severe in nature. For example, if you failed to perform the main obligation of the contract, this would be a fundamental breach of contract, even if you upheld more minor obligations.

Anticipatory Breach

An anticipatory breach of contract is when one party realizes that they will not be able to fulfill the contract, so they do the responsible thing and let the other party know that they will not be able to fulfill the contract. Even though you have done your best to notify the other party, this type of breach of contract can still lead to the party breaching the contract to make payment to the other party.

If you have been accused of a breach of contract, it is important that you have an experienced attorney to represent you. Contact us today for more information or to schedule an initial consultation.