If you own a business in Georgia, you likely deal with contracts regularly. When all parties involved in a contract follow their duties, everything usually goes smoothly. Unfortunately, there are times when a breach of contract occurs. Here’s a closer look at four types of contract breaches.
If one party informs another party ahead of time that they’re not fulfilling the terms in a contract, they’re performing an anticipatory breach. Learning about a contract breach before it happens can be helpful, but anticipatory contract breaches can still cause a lot of stress for all parties involved.
Actual contract breaches occur when one party either declines to fulfill their obligations or performs incomplete work. Since other parties aren’t informed of a breach before it happens, this situation often takes people by surprise.
Material breaches occur when a party delivers a product or service that’s different from what they needed to deliver. In most cases, these types of breaches mean that the party who didn’t perform a breach doesn’t have to deliver on their end. Understandably, these situations often end up turning into commercial litigation matters.
Most contracts detail any work that needs to get completed. A minor breach happens when one party fails to perform a certain aspect of a contract while still turning in the majority of the work.
If you are the victim of a breached contract, this could wreak havoc on your business. For help resolving contract breaches, it might be beneficial to contact a business lawyer. A legal professional may help you decide whether to file a lawsuit or resolve the issue by some other means.