In a perfect world, all business arrangements would be handled in a way that is advantageous to everyone involved. Regrettably, a lot of conflicts and disagreements can develop over time. The longer you are in business with someone, the more opportunity there is for arguments and misunderstandings.
A claim for material breach of contract is a civil action and the judgments that are granted are intended to put the aggrieved individual in the situation they would have already been in were it not for the breach. Judgments concerning these breaches are not devised to penalize the defendant.
No matter if the issue is a financial one, or caused by a delay, a miscommunication, or another obstacle that has popped up along the way, contracts can be broken. You will need to learn how to recognize when a commitment that has gone unfulfilled now classifies as a material breach.
A material breach has taken place when one person is not able to fulfill their contractual commitments to such a degree that the agreement is basically worthless. Material breaches are also known as total breaches due to the fact that they cancel out the entire reason for the contract.
Deprived of a Bargain
Another indication of a material breach is if the injured party does not get what he or she was guaranteed in the contract. For example, If you received an entirely different service or product than what the contract stated, or you never received the service or product promised to you in the contract, you may have grounds for a claim of a material breach.
Not Resolved With Financial Compensation
If the issue is able to be fixed with a sensible amount of effort or expense while maintaining the contact, the breach might not be deemed material.
An Issue of Bad Faith
Occasionally, breaches are caused by basic, everyday oversight, mistakes or circumstances that are out of anyone’s control and sometimes breaches are caused deliberately in the spirit of malfeasance. If ill-will can be proven, then you probably have a material breach. For example, if an administrator disregards their contractual regulations and is willfully disobedient, you might have a case for a material breach of your employment contract.
Arguments concerning a material breach of contract occur frequently because they have a very real impact on companies of all sizes in every industry. If you are in the middle of a conflict like violating your non-disclosure agreement or contract fraud, you need to be aware of your rights and find a legal solution to your dilemma.
If you have additional questions regarding what to do when you encounter a breach of contract, please get in touch with the Leiva Law Firm by calling 818-519-4465. We have an extensive background in helping businesses avoid breaches of contract claims and drawing up precise and enforceable business agreements and contracts. We can help you examine your legal rights in Spanish or in English.