breach of contract



Contracting party's actual failure or refusal to perform (or a clear indication of its intentions to not perform) its obligations under the contract. A breach could be effected by (1) repudiation of obligations before the beginning of the contract, (2) repudiation of obligations before its completion, or (3) a conduct that prevents the contract's proper performance (such as interfering with the other party's performance). Breach of a major term (condition) of the contract (called 'fundamental breach') entitles the aggrieved party to (1) treat the contract as discharged, (2) consider itself free from its own obligations under the contract, and (3) sue the offending party for damages arising from the breach.
Breach of a minor term (warranty) allows for suing for damages arising from the breach, but does not allow any party to treat the contract as discharged except where terms of the contract override this implied legal-provision. In contrast to 'rescission of contract,' a breach of contract does not operate retrospectively.

Use breach of contract in a sentence

  • The management company sued the singer for a breach of contract after quitting the boy band because he was originally contracted to make five albums.

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  • The breach of contract had expected consequences that were plainly laid out so that any reasonable person could understand what was going to happen.

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  • The business had to hire an attorney to represent them when one of their customers filed a suite for breach of contract, stating that they had not met the commitments written in a signed agreement.

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