What is a Breach of Contract?
A business contract is a legally binding agreement between two or more parties to engage in, or refrain from engaging in, certain activities. A breach of contract occurs when one party does not perform the responsibilities assigned to their role within the contract.
There are two main types of contract breaches:
Material breaches are significant ones, as they destroy the value of the contract. For example: a party may have agreed in a contract to not sell ice cream under a certain name. If they do so anyway, their breach may be considered a material breach, as the whole point of the contract was for that to not happen.
Immaterial breaches are less significant, and can often be remedied while keeping the contract intact. For example, a party may be contract bound to pay a monthly royalty in exchange for selling ice cream under a certain name. If they fail to make a royalty payment, their breach is “immaterial” as the breach can be easily remedied: the late payment can be made, and both parties may proceed forward by honoring the terms of the original contract.
Common Responses to a “Breach of Contract Notice”
Perhaps you've notified another party, in writing, that they have failed to live up to the terms of a contract, using a "Breach of Contract Notice" to do so. You may expect one of the following four responses:
None - Sometimes, the person who receives your Notice of Breach of Contract will ignore the letter, hoping it will all “go away”, and that the other party - you - will forget about it.
They disagree - Often, the party you accused of breaching a contract in your letter will send you a letter back stating that no breach occurred.
They wish to talk - The other party may call or write back stating that they wish to meet and talk. Their intentions may still be unknown.
They agree with you and wish to remedy the situation - In this rare scenario, the other party agrees with your Breach of Contract Notice and they wish to remedy, or “cure”, the breach.
In all such instances, an attorney who handles contract disputes can advise you on how to best proceed, while preparing and responding to communiqué from the other party.
Example Reasons to Hire a Contract Lawyer
Below are some instances where you may benefit from hiring a contract lawyer:
You wish to draw up a contract that is legally binding, while being admissible in court, and free of loopholes, and you would prefer that an expert prepare such a document.
You wish to accuse someone of breaching a contract, and you would like an attorney to advise you on how to proceed, so that the contract can be “cured” or so that compensation for the breach can be paid to you.
You have been accused of breach of contract and would like an attorney to handle all comminiqué from here on out, so that your responses are taken seriously, and so that your interests are protected.
Negotiations have failed, and you wish to use a contract attorney to represent you during communication with the other party, and during litigation in court.
Schedule an Appointment with our Firm
For help with any type of contract law, or to receive advice before signing a contract, click below to schedule a meeting. We keep all info strictly confidential, and we answer all inquiries in a timely manner.