Contracts play a key role in business deals and daily life. When a person enters a grocery store and purchases an item, they enter into a contract.
Contracts can also be breached, which usually places one party at a disadvantage. However, there are several ways in which a contract can be breached. Here are some important facts to consider.
Anticipatory breaches
In some cases, a party may realize in advance that they are not going to be able to meet their contractual obligations. This is called an anticipatory breach of contract. For example, if a vendor does not receive supplies, they may not be able to fulfill orders. If they let affected parties know about the situation, then this is an anticipatory breach.
Often, anticipatory breaches can be resolved easily. For instance, the vendor could promise to double the order the following week when they receive their own supplies.
Minor breaches
As the name suggests, minor breaches are usually not that serious, relatively speaking. For example, a product may arrive one day later than scheduled. Again, this type of situation is often easily remedied. For example, a discount may be agreed for the late delivery.
Material and actual breaches
Material and actual breaches are usually more serious. These occur when a fundamental clause of the contract has been broken. For example, if someone receives an item that is completely different from the product description they were given. Often, material and actual breaches of compensation have to be remedied through significant sums of compensation.
If you are dealing with a contract breach, it will be beneficial to have legal guidance on your side.
