Breach of Contract
“Punitive damages may be available if the breach is accompanied by fraud or misrepresentation.”
The definition of a breach of contract is a failure to perform any term of a contract, written or oral, without a valid legal reason. Contracts are legally enforceable agreements and must be upheld. They are governed by state statutory and common law. These laws ensure that written—and in some cases, oral—contracts are fulfilled as specified or implied in the contract. If one side fails to stick to its part of the bargain, there is a breach. It can include damaged property, substantial financial loss, or a missed deadline.
State laws vary on what types of damages can be claimed for breach of contract to be upheld. For example, there are some states that allow recovery for loss of profits for a new business, while other states require some track record before those damages can be claimed. And some states have laws allowing for double or triple damages in certain types of cases. Punitive damages may be available if the breach is accompanied by fraud or misrepresentation.
Types Of Breach Of Contract
- Corporation orders a product to certain specs, and then for one reason or another doesn’t accept delivery. Or accepts delivery and doesn’t pay
- Corporation interferes with another corporation’s business, e.g., buys many items but wrongfully obtains a customer list
- Former employee starts a new business and disparages old firm
- Interpretation of an oral or written agreement
- Mistakes made on the part of the agent or person writing the contract
- False and misleading statements
