April 23, 2010, Newsletter Issue #109: What is breach of contract and how do I know if this has occurred?

Tip of the Week

First of all, it must be established that there is a legally binding contract between two or more parties. Once it is established that a contract binding contract exists, a breach is simply when one side or the other fails to perform what they promised under that contract.

This can include when one party to the contract makes it impossible for the other party to perform or if one side does something against the spirit of the contract; or one party refuses to perform under the contract.

Just because a breach of contract has occurred does not necessarily mean that the whole deal is off and a lawsuit must be filed. Many times it depends upon whether the breach or failure to perform is material or immaterial to the spirit or intent of the contract.

If you feel that a breach has occurred in a contract entered into by another party and yourself, you have several options to pursue.

1. You might ignore the breach and act as if nothing has happened
2. You can point out to the offending party that you feel a violation or breach has occurred and give the offender the opportunity to remedy the problem
3. You can refuse to pay under the contract until the problem is resolved
4. You can correct the work yourself and then subtract from whatever total was agreed to under the contract.

All of these options can be taken into consideration and should be done so with the advice of a business litigation attorney. There may be ramifications associated with any one of these options. In order to protect your rights and your property, a reputable business litigation attorney will be able to assist in making any determination as to how to handle the alleged breach.

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