Breach of contract occurs when a (1) party is under an absolute duty to perform, this (2) absolute duty of performance has not been discharged, and there is a (3) failure to perform in accordance with the contract’s terms. Although this on it face seems simple, there are many, many issues in contract law which can change the legal outcome.
For instance, under the “first breaching party” rule, a party who first breaches a contract usually cannot turn around and later claim the benefits of the contract. As such, if you breach first, you will have a difficult time filing suit on a subsequent breach by the other party. In many circumstances, whether or not a breach is a “material breach” will often determine who carries the day in court. Furthermore, it may even be the case that the breach goes to the very core of the agreement, and, therefore, a rescission — or outright cancellation of the agreement — is warranted.
If you are an individual, corporation, limited liability company (LLC), limited liability partnership (LLP), professional corporation, or even a general partnership in need of help with contract law — or any other aspect of business/corporate law — contact us for a free consultation.