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Local Law Firms Home > Business Law Overview > Breach of Contract A contract is an agreement between two parties that is legally enforceable. There are two different types of contracts—written and oral. Usually, both types of contracts are legally binding. When a contract is oral, it is best to always write down the terms of the contract in case a dispute ever arises. Failing to write down vital details may lead to parties remembering the terms of the contract differently, or forgetting certain terms entirely. In every contract, a promise is made to either pay a certain amount or perform a particular duty. When an involved party fails to do what was promised, then that party may have committed an act known as breach of contract. Breach of contract can also occur when a party makes it impossible for the other party to carry out their contracted duties or when a party simply makes it clear that they do not intend on carrying out what was promised.
Did you know? When one party has breached the contract, the other party may be entitled to damages. These damages can include consequential damages, liquidated damages, punitive damages, or nominal damages. In addition to damages, a party may receive other means of compensation when another party breaches a contract. The court may order the party who breached the contract to carry out the duties that they originally agreed to perform. |