A breach of contract comes in different forms

by | May 11, 2021 | Business Litigation

Promises must be kept, deadlines met and orders filled. This represents the expected sequence of events in a business agreement with a supplier. As a business owner, you expect your supplier to fulfill its obligations for you to get your products to market for awaiting consumers.

However, in some situations, a breakdown occurs. In your case, time was crucial, but your supplier was unable to deliver the goods. This leads to a delay likely costing you several hundred thousand dollars. Those projected losses were supposed to be profits. This situation is a prime example of a breach of contract.

Unfulfilled obligations

Sometimes, events surface and disrupt the internal workings of any business arrangement. Delays, financial problems or unexpected turns of events can lead to a supplier failing to deliver. As a client who expected those obligations fulfilled, you cannot help but express disappointment.

However, this breach of contract goes far beyond disappointment. It is likely hurting your bottom line as the financial harm represents a big blow that you can only hope to overcome. Now, you understand that the likely way to resolve this situation is through a lawsuit.

Here are certain types of breach of contract:

  • Material breach: These situations surface when a party fails to fulfill a contract, leading to significant enough loss that a lawsuit is likely. Termination of the contract is the next step.
  • Partial breach: Although a small-scale breach, it still represents a potential problem for the non-breaching party. It does not rise to the level of a material breach, however, payment to the non-breaching party often occurs in these situations.
  • Anticipatory breach: These are more difficult to prove in court and occur when a party displays intentions that it does not plan to abide by certain obligations within a contract.

Sometimes, you have no alternative but to take legal action in breach of contract scenarios. When considering doing so, consult with an experienced business law attorney who is prepared to provide important insight.