Actions That Count As a Breach of Contract – When getting into an agreement with a party, you sign a document means that states that you will abide by the terms and conditions you’ve mutually agreed upon. Thus, the moment you fail to obey the terms and go off track, it is considered a breach of contract.
When high profile clients get into an agreement with each other, the reason for creating legal obligations for one another is simply a way to protect their own interests. In such cases, a breach of contract usually occurs when one of the two parties fails to perform an obligation in a timely manner. In the end, the breach will depend on the nature of the contract entirely. There are two categories that the breach of contract falls into; either immaterial or material. This categorization will then decide what the appropriate legal approach should be.
The Two Types of Contracts
There are two types of contracts and both are legally enforceable; they are oral contract and written contracts. This is why; you should take extreme caution when you enter into a handshake agreement. Should you go ahead and get into the agreement anyway, make sure to put that into writing so that specifics of the agreement aren’t forgotten or remembered differently at a later date.
Consider a contract breached when:
- One party fails to perform what they agreed upon
- One party takes an action that renders the other incapable of fulfilling their duties
- One party openly declares that they won’t follow the agreement any further
What Happens When a Contract Is Breached
When a contract is breached by one party, the other is entitled to different remedies. In Flower Mound, Texas, the remedies that are most sought out are:
Consequential Damages
The party responsible for the breach pays an amount to the other. The amount should be enough to put the non-breaching party in a position that they would have been, if the contract had been carried out as per its terms.
Punitive Damages
The party that breaches the contract pays an amount or fine that’s meant to be a punishment for the breach of contract.
Liquidated Damages
The liquidated damages are a part of the contract itself, and are agreed upon before the contract is signed. It states the amount that must be paid when a party breaches the contract.
If you find yourself in such a situation when someone has treated you unfairly, feel free to contact us for consultation at (972) 808.7227.
