What Are The Most Common Types Of Breach Of Contract In Ohio?
Contracts are ubiquitous in today’s modern society. Businesses use them, individuals use them, and the government uses them. A valid legal contract requires the parties to perform specific duties. If one party fails to perform their duty in accordance with the contract, they’re said to have “breached” the contract. In this article, the Columbus, OH, breach of contract attorneys at Kohl & Cook Law Firm, LLC, will discuss some common types of breach of contract.
Examples of breach of contract
At its core, a contract is a legally binding agreement that requires the parties to perform some action referred to in the contract. When one party fails to meet its obligations under the contract, a breach of contract occurs.
Reasons for breaches of contract include:
- One party’s failure to complete their contractual obligations on time
- One party’s ability to comply with specific terms under the contract
- One party’s complete failure to perform under the contract
Below, we’ll discuss four common types of contract breaches and how they could impact you or your business.
Material breach of contract
If a party fails to perform the essential terms of the contract, they have committed a material breach. Such a breach may include the non-performance of a service or failure to deliver a product after receiving payment. In other words, a material breach goes to the very core of what the contract is all about.
A material breach usually discharges the non-breaching party from its obligations under the contract. In many cases, it also provides grounds for the non-breaching party to sue the party that breached the contract for damages.
Minor breach of contract
A minor breach of contract describes a situation where one party partially performs under the contract but does not do everything that they were obligated to do. In other words, there is a failure to perform, but they didn’t commit a material breach, and they did not violate the entire contract.
Anticipatory breach of contract
An anticipatory breach of contract describes a situation where, before performance is due, one party tells the other they will not or cannot perform their obligations.
In the event of an anticipatory breach, the non-breaching party generally has two options. They can wait for the breaching party to perform their obligations, or they can sue for damages, including equitable damages, which would include forcing the other party to fulfill the terms of the contract.
Actual breach of contract
An “actual breach” of contract refers to a situation where one party has completely failed to meet their obligations under the terms of the contract. This term stands in contradistinction to an anticipatory breach of contract. When referring to an actual breach, it means that the breach has already occurred—not that it will occur.
Actual and anticipatory breaches of contract are both related to timing. It helps the parties understand when the breach occurred. Meanwhile, material and minor breaches of contract are terms that indicate the severity of the breach.
Talk to a Columbus, OH Breach of Contract Attorney Today
Kohl & Cook Law Firm, LLC, represents the interests of businesses and individuals who have suffered damages due to a breach of contract. Call our Columbus breach of contract lawyers today to schedule an appointment, and we can begin discussing your next steps right away.
