Breach of contract claims are a serious, yet common issue for business, investors, and individuals. Claims are often complex since each party’s viewpoint is different regarding the terms of agreement, quality of service, or delivery of final product. A breach of contract claim can take place with either verbal – sometimes called handshake agreements – or written contracts. However, verbal contracts are more difficult to prove. Written contracts protect all parties involved from misunderstandings that can take place during negotiations, outline specific terms of agreement and limit one party’s ability to change the terms after the fact.

The specific consequences involved with a breach of contract depend on the nature of the contract, the severity of the breach, and what was originally agreed upon by both parties.

There are five categories of breach of contract:

• Anticipatory: When a party states they will not be delivering on the terms of the contract
• Actual: When a part does not perform the terms of the contract
• Material: When goods and services are not delivered within a specified timeline per the contract
• Minor: Main deliverables have mostly been achieved, but not to a specific standard.
• Repudiatory: Occurs when the breach fundamentally undermines the purpose and performance of the contract.

Breach of Contract claims allow the non-breaching party to receive the benefit of the contract either through financial damages equitable remedy, performance obligations or other legal solutions.

Damages are given to put the non-breaching party in the same place they would have been if the contract were performed.

If you are involved in a breach of contract and are unable to resolve the issue on your own, we recommend you seek legal representation. An experienced law firm such as McHenry County Law will carefully review all elements of your case and guide you through the legal process.

There are numerous ways to pursue and challenge a breach of contract. We’ve here to help you resolve your breach of contract issues efficiently and effectively. Through each phase of the legal process, we provide personalized, detailed solutions to assist you with our legal case.