An Overview of Breach of Contract Lawsuits When a binding agreement is not honored by any of the parties involved, or it’s interfered with, breach of contract lawsuits may be filed. Contracts usually include many stipulations that each participating party must abide by. Common reasons for a breach include not performing on time, not performing in line with the guidelines of the contract, or not performing at all. There may be any of a number of reasons as to why someone breached a contract, but contractual duties remain legal obligations. There are several types of breaches of contracts that can occur. Some of these include minor versus major breaches, a material breach, a fundamental or repudiatory breach, and an anticipatory breach. All of these can lead to breach of contract lawsuits, but different regulations may apply based on the circumstances. Breaches are categorized as minor if there has been substantial performance in line with the contract. In this case, one can only sue for actual damages and not performance. Major breaches usually consist of work not being completed on time as specified in the contract or not at all. Material breaches commonly involve Small or Large Business litigation. An example would be hiring a contractor for a plumbing job and signing a contract specifying copper pipes be used. If a different type of pipe is used, leading to potentially shorter life of the workmanship, damages may be sought for a material breach. Fundamental or repudiatory breaches, as the name suggests, are such severe breaches that they allow a party to terminate completion of a contract and sue for damages. Finally, if there is indication that a party will not perform their duties as described, then the party affected has the right to terminate before the breach actually occurs, leading to an anticipatory breach.

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