Breach of Contract
A breach of contract is a failure to perform contractual obligations without lawful excuse, such as frustration. Remedies for breach of contract depend on the nature of the clause in the contract and the consequences of its breach within the law.
Contractual terms take several forms:
Breach of a condition
Breach of a condition entitles the aggrieved party to terminate the contract regardless of the consequences or seriousness of the breach. If the contract contains specifics as to weight, measurement, and the like, they are conditions of the contract and must be complied with. Failure to comply with a condition will entitle the innocent party to terminate the contract. In some situations, it might be appropriate to stipulate a band of compliance or a margin within which the goods or services would be acceptable. Drafting in this way is also intended to oblige the parties to comply and will constitute a condition.
Breach of a warranty does not give the aggrieved party the right to terminate the contract; it gives rise to a claim for damages only.
An intermediate term is a term the breach of which would be so serious as to deprive the innocent party of the whole or substantially the whole of the benefit that it was intended, he derive from the contract. While an intermediate term is not a condition, breach entitles the innocent party to terminate the contract.
Breach of a less serious term would only entitle the innocent party to claim damages.
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David has an LL.B (Hons) degree in law. He was voted one of the UK’s most influential aspiring lawyers. He was also directly involved in the protection of workers’ rights as respected Union Rep for Usdaw, and he is the Non-Executive Legal Director for the Humber Taxi Association.
Examples of Breach of Contract
Examples of a breach of contract
- Failing to deliver services or goods,
- Failing to complete a job,
- Failing to pay in a timely manner,
- Providing services or goods that are subpar.
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