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4 forms of contract breaches 

On Behalf of | Nov 25, 2022 | Contract Disputes

Forming a well-made contract can make it clear what all parties are obligated to provide for each other. This could mean an obligation to provide products or services or to build a partnership over several years, for example. Whatever you plan to do with your contract, it needs to be carefully detailed without any faults or holes.

Even the best-made contracts, however, can’t prevent all disputes. The party your company made a contract with may have breached their responsibilities. Contract breaches often occur when there’s confusing language or a disagreement about what’s being provided. In fact, there are several kinds of contract breaches possible. These include:

Actual or anticipatory

An actual breach happens when the responsible party fails to entirely fulfill their duties, exceeds their due date and makes it clear they won’t finish the job. An anticipated breach can happen when it’s clear that duty will be unfulfilled by the due date. These are very minor differences that can greatly change what kind of breach has occurred.

Minor or material 

A minor breach happens when the responsible party finishes only part of their duty. A material breach occurs when the wrong product or service is done. As such, a minor breach could mean that there were missing cans of yellow paint during delivery, while a material breach would mean the yellow paint was red paint instead. 

Companies can suffer greatly because of a contract breach. You may need to know your legal options when fighting a contract breach.