Breach Of Contract


by Paul Howe

A contract may be breached by an employee or an employer; in either situation you may feel compromised and vulnerable. There are many ways in which a contract may be breached, however there a two particularly common forms of breach of contract.

1. Failure to pay employee: Should an individual have provided the services outlined within a contract, to an acceptable standard, but their employer is refusing payment, they have a right to sue to receive the payment they are due.

2. Failure to provide services: Should a client have either paid for services in advance or agreed on services to be provided within a particular timescale and the contractor has not delivered they have a right to claim for damages, or for a court order stipulating the work must be carried out.

There are differing levels of breach of contract, with each level being deemed more significant in the eyes of the law. Obviously as contractual breaches become more significant it is easier to file a claim for damages.

- Minor breach of contract: Minor breaches of contract only allow the claimant to sue for 'actual damages.' Minor breaches of contract are described as a partial breach of contract or an immaterial breach of contract: a breach of a verbal contract for example. The claimant will only be able to get compensation for the losses in incurred due to the differences in contract, the courts will decide whether there are claimable differences in the contract originally stipulated and the contract which was carried out.

- Material breach of contract: In this case a failure to provide the services required by the contract may have occurred. Also under this category are instances in which the providing party has given incorrect or faulty services. The claimant can either ask the court to rule that the party must fulfil the contract, or has the option to claim for damages.

- Fundamental breach of contract: This is a serious breach of contract which allows claimant to both terminate the contract and receive compensation for their damages.

- Anticipatory breach of contract: To contextualise this type of breach, this could occur in a supply contract. In a supply contract a service will be agreed in advance, and for a particular date. Should the supplier pull out of the contract before the date of supply, or suggest they are planning to; it is possible to claim for damages in some cases.

About the Author

Need effective dispute solicitors? http://www.businessdisputesolicitors.co.uk/business-dispute-solicitors/ Business Dispute Solicitors specialise in Commercial Litigation http://www.businessdisputesolicitors.co.uk/

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