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    • Shaun Wesley Hodge
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  5. What are the common causes of contract breach?

What are the common causes of contract breach?

On Behalf of The Hodge Law Firm, PLLC | Sep 29, 2022 | B2B Commercial Law, B2B Commercial Litigation |

A broken agreement, especially for your business, may spell financial disaster. Since your business hinges on specific expectations of services or products, when one of your associates does not follow the terms of a deal, it may impact other areas.

A contract break or breach is one of the most common reasons for commercial litigation. Since one failure to perform may hold up many other aspects of the business, it is important to get things on the right track sooner rather than later.

What is a failure to perform?

When one company owes you a service or a good by a specified timeline, and it does not happen, you may have a failure to perform. You may begin remedies once a breaching party misses a deadline without notice.

What is a material breach?

If your contract contemplates the type of product you should receive, and the other party provides less or an inadequate substitute without approval, it may rise to a material breach. This can also happen in real estate contracts if a subcontractor finishes the project with slipshod quality or inferior materials.

What happens if you agree to change a contract?

The hope in a contract is that everyone involved does what they should. When this cannot happen, for reasons sometimes outside of any party’s control, you may revisit the terms and revise a contract so long as all parties agree. This may help keep a breach from happening or allow you out of the contract to pursue other avenues.

A breach of contract may become expensive and detrimental to your company. If you suffer financial damages, you may want to enlist the assistance of someone who understands how to get through a breach process.

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