Breach of Contract

What Is Breach of Contract? A breach of contract occurs when a party to a legally binding agreement fails to fulfill their obligations under the contract. This can involve failing to perform on time, failing to perform according to the terms, or failing to perform at all. Breach of contract is one of the most common causes of action in civil litigation. ## Types of Breach - **Material breach** is a substantial failure that defeats the purpose of the contract, entitling the non-breaching party to terminate and seek damages - **Minor breach** (partial breach) is a less significant failure where the non-breaching party must still perform but can recover damages for the deficiency - **Anticipatory breach** occurs when one party clearly indicates in advance that they will not fulfill their contractual obligations ## Remedies Common remedies for breach of contract include compensatory damages, consequential damages, specific performance (court-ordered fulfillment), and in some cases, rescission of the contract. The non-breaching party has a duty to mitigate damages by taking reasonable steps to limit their losses.