Many business disputes revolve around a breach of contract. Two business owners may have signed a contract together, but only one of them upholds their side of the deal – such as paying for services or products that were never rendered.
Contracts can be breached in numerous different ways, however, and the exact manner of the breach helps to determine the next steps that should be taken. Below are three examples.
A minor breach
In some cases, the contract breach is considered to be a “minor” issue, although it can still cause financial harm. For instance, a shipment may arrive a day later than the contract stipulated. This can cause delays, but the contract is fulfilled eventually.
An anticipatory breach
Another type of contract breach is when one party anticipates that such a breach is inevitable. They reach out to the other party and inform them in advance that they are going to fail to fulfill the contract. For example, a lumber mill could accept a contract to deliver materials to a job site, but then supply chain issues may mean they don’t have the materials on hand to deliver.
An actual breach
Finally, it is often known as an “actual” breach when one side refuses to comply with the contract. For instance, maybe the lumber mill has another offer at a higher price point. They refuse to fulfill a prior obligation in order to make more money on that individual sale.
As a business owner, if you find yourself involved in a dispute over a contract breach, take the time to look into all of the legal options at your disposal.