Contracts are the cornerstone of the commercial and business world. Each party relies on the promises made in the agreements and this is why they are essential to keeping the industry going forward. When one side does not keep their end of the bargain, there is a risk that many others cannot fulfill their obligations as a result and a lot of money lost in the process. This is why contract breaches can be litigated upon in court. Those who are suing for contract breaches need to demonstrate that there was a valid contract and how the other party failed to keep their promises.
Parties often negotiate extensively on the terms of the contract. While the simplest way to prove the existence of a contract is to show a written contract that has been signed by both parties, oral contracts can also be enforced up to a certain monetary amount. Courts analyze the contract to see what their obligations are and whether they have been met or not. Courts need to ensure that facts were not misrepresented or that the contract was not entered into as a result of duress.
A breach may be minor or material. A minor breach is one where a service is not performed or an item is not delivered by the date it was due. A material one, on the other hand, is one where the service or product delivered is different from what was agreed upon in the contract. A breach can also either be actual, where a party actually refuses to do their part in full, or anticipatory, where someone states ahead of time that they will not be keeping their promise.
A well drafted contract will include language on how to deal with a breach of a contract. Since contracts are an essential part of business and commercial law, it might be helpful to consult an experienced attorney to look over contracts and make sure they are enforceable and cover as many situations as possible.