What constitutes a breach of contract?

On Behalf of | Jun 25, 2024 | Business

When two parties enter into a contract, they create a legal agreement that includes an offer, acceptance, consideration, and mutual intent. A breach of contract occurs when one party fails to fulfill part of the agreement. Understanding how to address a breach of contract in civil litigation can help protect you.

Types of breaches

Kentucky classifies contract breaches into four categories:

  • Minor breach: One party partially fails to fulfill the agreement.
  • Material breach: One party fails to fulfill enough of the agreement to undermine the contract.
  • Anticipatory breach: One party indicates they will not fulfill future obligations.
  • Actual breach: One party outright fails to perform their obligations.

Examples of breaches

A painter using a shade other than specified constitutes a minor breach. The homeowner can seek compensation for the paint cost difference.

A wedding photographer failing to show up constitutes a material breach, allowing the couple to terminate the contract and seek damages.

A contractor stating they will not complete a renovation on time constitutes an anticipatory breach. The homeowner can hire another contractor and pursue damages.

A tenant stopping rent payments constitutes an actual breach. The landlord can pursue eviction and compensation for unpaid rent.

Understand and remedy breaches

In a breach of contract case, the non-breaching party must prove the contract’s validity, the breach, and the resulting damages. They must also take steps to mitigate losses. 

Legal remedies for a contract breach include suing for monetary compensation, petitioning for specific performance, seeking contract termination, or requesting a contract modification. Legal advice can help you navigate a breach and protect your interests

It is important to ensure your contractual relationships remain mutually beneficial by understanding what constitutes a breach of contract and the available legal remedies.