An overview on Breach of contracts

• Contracts are usually breached after the performance date. To breach a contract means that one party without excuse fails to perform his or her obligations under the terms of the contract. This type of breach would be labeled as an actual breach. Sometimes a contract is breached before the performing date. This type of breach is called an anticipatory breach. T

 

• Money damages, the most frequently granted remedy for breach of contract in a court of law, may be (1) compensatory, (2) liquidated, (3) nominal, or (4) punitive. However when money alone does not provide satisfaction to the injured party, courts provide equitable remedies called rescission, specific performance, and injunction. 

• Breaches are of two types: material (failure to perform substantially the obligations required by a contract), and minor (less significant than a material breach). When a minor breach occurs both parties must still perform but with the injured party legally free to seek damages. A material breach allows the injured party to end the contract. He or she is excused from further performance and may pursue money damages. 

• As soon as a breach occurs, the injured party has a duty to mitigate (minimize) the damages. 

 

• The defendant in a breach-of-contract suit may claim such defenses as fraud, duress, undue influence, and mutual mistake. These four acts also make a contract void or voidable by the victim. 

• Other defenses for a breach of contract suit include bankruptcy and the statute of limitations.