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Four common types of contract breaches

On Behalf of | Jun 8, 2021 | Business Law |

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.

Anticipatory breach

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 breach

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 breach

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.

Minor breach

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.

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