What 3 Elements Must a Breach of Contract Claim?

7 Small Business Trends In 2021

Contracts govern what you do on a daily basis. Contracts are used daily, from the basic job of purchasing goods at your local market to the more arduous effort of acquiring a new house. An agreement is between two or more persons that generate legally binding mutual responsibilities.

On the contrary, breach of contract elements occur when one side fails to produce within the agreed-upon time limit, does not fulfil the conditions of the agreement, or fails.

However, with the proper legal team on your side, you may file a breach of contract claim and demand damages for any harm such a violation may have caused your company.

3 Elements of a Breach of Contract Claim

The following 3 elements a breach of contract claim should have.

The contract must first exist

The contract cannot be enforced when it is not legitimate. To proceed with a breach of contract action, proof of the contract’s validity is a must. It can be written or oral – but written agreements are easy to verify.

According to Texas law, a contract must contain an offer made by one party to another. Approval of the request admits complying with –

  • How each side must observe
  • The terms both parties have fully agreed
  • Execution and delivery of the agreement ensuring it is binding and symbiotic

The contract is considered legal upon fulfilling these conditions, and a breach of contract case can be brought.

It will be invalid if the agreement contains accusations of fraud, evidence that the deal was signed under duress, or a breach of public policy.

The breach results in damage to the plaintiff

The first step in calculating damages in a breach of contract action is scrutinizing the contract’s provisions. Penalties will frequently incorporate into contracts.

However, if no explicit conditions are specified, the court may award the following:

  • Contractual performance in detail
  • Loss of money due to contract violation
  • Compensation for lost time because of a breach of contract
  • Compensation for the plaintiff’s out-of-pocket expenditures
  • Payment for the future time, money, and expenses lost due to the breach
  • Any further damages that the court deems reasonable as per contract’s provisions

If all of the criteria above are present, there may be grounds for legal action.

Note that you have to take legal to initiate legal action for a breach of contract within the four years of violation happened. Again, to be pursued, the breach of contract lawsuit has to submit within that deadline. This time limit applies regardless of when the complainant learns of the violation.

The defendant has breached the contract without fulfilling obligations

A minor or significant breach occurs when a defendant fails to execute under the contract. A lawsuit may not be worth pursuing if the violation is minor and has little impact on fulfilling the contract’s obligations.

For example, suppose the contract stipulates a delivery date for a product, and one of the parties fails to meet that deadline. In that case, it may be deemed a minor breach of contract since that party will still perform by delivering the agreed-upon goods.

If the violation is insignificant, the other party must continue to perform under the agreement but may collect any losses incurred due to the offense.

In the above example, if one party fails to deliver the product on time, the claimed party must still pay for the delayed products but may recoup any damages incurred by the delay.

A significant breach occurs when a party obtains anything different from the contract specifications due to the breaching party’s failure to execute contractual conditions.

For instance, if a contract calls for the sale of a cargo of apples but the buyer receives a shipment of oranges, the violation is significant.

When a substantial breach occurs, the non-breaching party is not obligated to perform under the contract and has instant access to all remedies for violation of the agreement.

Conclusion

A breach of contract claim is simply the violation of an agreement between at least two parties. At first, glance, defining a breach of contract appears straightforward. 

However, various requirements need to follow before claiming a breach of contract in a courtroom. First, you must establish that there is an enforceable contract. Following that, you must verify the remaining three elements of a breach of contract claim as stated above.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top