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Is every breach of contract the same?

On Behalf of | Jan 5, 2021 | Contract Law

When two parties enter into a contract, each party is expected to uphold their end of the deal. When they don’t, they may be accused of breach of contract. This is a serious accusation that can lead to legal action if it isn’t remedied appropriately. 

There are four basic types of contract breaches you may need to know about if you deal with these legal agreements. 

Material breach

A material breach means that one party delivered something completely different than what they were bound to deliver by the contract. For example, if a company should have delivered 100 pairs of shoes to you but delivered 100 shirts instead, it’s a material breach.

Minor breach

A minor breach occurs if the party delivers their part of the contract late. For example, if you should receive brochures for an event by the day before the event but you get them two days after the event, it’s a minor breach. 

Actual breach

An actual breach occurs if the other party refuses to uphold their side of the agreement. This is different than a breach that is merely anticipated.

Anticipatory breach

An anticipatory breach is one in which one party clearly states that they won’t be able to comply with their side of the breach. 

Any company that’s dealing with a breach of contract should consult with an attorney to determine what options they have for handling the situation. These may vary according to the circumstances so it’s best to find out which apply to your case. Remember, your options might have time limits, so it’s best to address these matters as soon as you learn about them.