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Common examples of contract breaches

On Behalf of | Jan 11, 2024 | BUSINESS LAW

Contracts are pivotal to all business operations. Your business will be drafting and engaging in contracts every day.

These legal documents protect your rights, and also the rights of the other party. Unfortunately, contracts aren’t always honored. Breaches can occur in numerous ways. The severity of breaches can also differ.

Outlined below are some of the more common examples of contract breaches.

Minor breaches

As the name suggests, minor breaches are less severe in nature. That doesn’t mean that they can’t be damaging, it just means that they may be easier to resolve. For example, if you expected to receive a delivery on a specific date, but the shipment was three days late, this is a minor breach.

This breach could be resolved by receiving a discount and assurance that it won’t happen again.

Material breaches

Material breaches are more severe and they tend to be more difficult to resolve. If you ordered a certain product from a supplier but received something totally different, this is a material breach. For instance, the product may not match the description that was offered. Or, the product may lack the quality that was promised.

This type of breach can be trickier to resolve because you may be stuck with a load of goods that you cannot use or sell. The seller may not want to take them back or refund your money.

Contract breaches can be anticipatory or actual

An actual breach occurs when the party you are dealing with refuses to honor the contract. An anticipatory breach occurs when the other party warns you in advance that they will not be able to honor the contract.

In some cases, contractual breaches can be easily resolved. In other instances, you may need to pursue your legal options. Having as much information as possible will help you to obtain a desirable outcome.