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How is a breach of contract defined?

As a business owner in California, you know that contracts are an integral aspect of doing business. While you hope for the best, breaches of contract can certainly occur, and these may cost your enterprise both money and time. The Balance explains some of the basics of contractual breaches so you can take the proper steps to have issues rectified.

There are a few different types of breaches that may occur. If you believe the other party has no intention of committing to their contractual obligations you may file an anticipatory breach, although these are usually much harder to uphold. There are also material breaches, which means that the issue is so severe that the other party is not capable of keeping his part in the agreement. A partial breach is one that is not so serious, and as a result, the other party would be expected to adhere to the terms laid out in the contract.

For a lawsuit alleging breach of contract to be filed, four criteria must be met. First, the contract should be considered valid in the eyes of the court. Next, the person filing the suit must show that the other signer failed to uphold the agreed upon terms, while the filer did everything that was obligated of him. Finally, the person filing the lawsuit must show that he notified the other party before the suit was initiated.

When it comes remedies for breach of contract, an order for payment to be made is a common solution. Damages may also be awarded depending on the circumstances surrounding the case. The contract can also be terminated, and the party accused of the breach may be ordered to cease offending actions.

If you have questions about contract law, don't hesitate to contact a seasoned attorney. Wang IP Law Group can help you organize your case and present it to the court. Schedule a consultation by calling (626) 269-6753 or visiting the website for more information. 

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