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Important aspects of breach of contract

Proper business practices are key in the success of any company. That is why business laws are in place to protect the interest of business owners, their partners and consumers.

One such act that these laws protect against is the failure to uphold certain aspects of a contracted agreement. Whether someone is filing or facing such charges, there are a few important aspects of breach of contract to be aware of.

Definition

Breach of contract occurs when one party fails to fulfill set obligations that both parties agreed upon in the contract. It is important to note that this does not only apply to the complete failure to provide services, but also to situations where one or more aspects of a project remain incomplete. Either way, the party has failed to adhere to the agreement, which may lead to legal action.

Claims and remedies

According to the law, there are a few stipulations for pursuing a claim of breach of contract. In order for a claim to stand, the claimant must first establish the relationship between the two parties and furnish a contract. If a party is able to substantiate the relationship and prove that at least part of the work is not complete, the court will likely rule in favor of the claimant and award damages. As for remedies to the breach, claimants have a few options to pursue, including:

  • Sue to compel performance
  • Release from upholding other parts of the contract
  • Sue for monetary damages

Claimants may choose to pursue the option that best benefits their situation. It is important to note that a damage award will only compensate for the incomplete work to place the claimant back at a neutral level. In other words, the court does not award damages in excess of the amount of loss due to the breach.

These are a few key aspects of a breach of contract case. If someone is filing or defending against a claim, it is a good idea to take some time to review and understand the law. An attorney can provide further explanation and assistance.

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