Understanding 4 Types Of Breach Of Contract In New Jersey

Every time you enter into a legal agreement, there’s always a risk of breach of contract. This is when you or the other party involved fail to deliver obligations or fulfill promises. Keep in mind that contracts are legally binding. Thus, avoiding a breach is necessary if you don’t want to face legal consequences. On the other hand, if someone breaks an agreement and causes you damages, you can consider filing a lawsuit for breach of contract.

Before you start making a claim, you need to know what kind of breach has been committed. Read on to learn about the different types of breach of contract in New Jersey.

Material Breach of Contract

This type of breach happens when you receive materials or services that are different from what the contract specified. Imagine, for example, that you asked a vendor to provide a hundred binding manuals, but instead received a hundred pieces of a brochure. That means they failed to provide exactly what was written in the agreement. Material breaches can also mean failing to perform obligations on time or when a party receives less than the benefit or result expected.

Minor Breach of Contract

A minor breach of contract happens when only certain aspects of the contract are fulfilled. Hence, it is also referred to as a partial and immaterial breach of contract. An example could be a late shipment of ordered goods. You can still pursue a legal remedy, especially if the delay causes financial loss to you or your business. However, you must prove the damages.

Anticipatory Breach of Contract

When the other party informs you in advance that they won’t be able to deliver on the terms of the contract, that is called an anticipatory breach of contract. For example, a service provider stops working for you to focus on another project for another client. Even though you are notified in advance, you can still make a claim and be entitled to legal remedies.

Actual Breach of Contract

This type of breach of contract in New Jersey is the most common. It is when the breaching party refuses to fulfill their duties by the due date. An example would be a vendor refusing to deliver ordered goods to the recipient. An actual breach of contract is also committed when the breaching party performs their obligations incompletely or improperly such as when a vendor delivers subpar goods. Such actions usually affect results and lead to business loss.

What can you do when a breach occurs? Just as you can file a breach of loyalty of duty against an employee, so can you file a complaint against a person or a business to get justice for economic loss. Depending on the type of breach of contract, the potential remedies that you can pursue include compensatory damages, specific performance, injunction, and liquidated damages.

What can you expect after filing a case? Anticipate that when you file a breach of contract lawsuit against the other party involved, chances are, they have a counterargument. This is why it’s recommended to seek legal assistance from experienced attorneys who understand contract law. They can help assess the situation and guide you through the process.

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