Skip to Content
Call Today: 313-546-9685

What happens if a contract is breached?

Hubbard Snitchler & Parzianello

If you have encountered a breach of contract in your everyday course of business, you will realize it can be disruptive, to say the least. It is helpful for business owners to understand what is considered a contract breach and what they can do about it if they are on the other end of a breach.

Contract breaches and enforcement

Following a contract breach, enforcement of a contract all depends on the nature of the contract breach, the specifics of the contract and the laws in your state. It can be useful to take a step back and remember that thoughtfully approaching negotiating, drafting and executing your contracts may come in useful down the road whenever a contract dispute pops up.

One consideration that can impact contract enforcement is the nature of the breach. First, one must know if it was a minor breach or a material breach.

In circumstances of minor breaches, the breaching party is usually provided with a reasonable amount of time to remedy the problem. A minor breach is typically defined as one that does not involve the most important parts of the contract agreement such as the price or delivery of the goods.

When you contract has been materially breached, you typically are excused from performance of the contract and may be able to seek remedies outlined in the contract. These can include liquidated damages. Other remedies such as actual damages or specific performance of the contract may also be available in certain situations.

Different remedies and options may be available to you as the nonbreaching party. Because the options can be complex, and it is important to know what they are to select the best option to achieve your desired outcome, it can be useful to have trained guidance to help navigate the contract process from beginning to enforcement if a contract dispute arises.

  • Facebook
  • Twitter
  • LinkedIn
Share To: