Cadden & Fuller LLP Cadden & Fuller LLP

A Client-Focused Approach to Business and Real Estate Law

Breaching a contract: what to do?

On Behalf of | Jun 30, 2020 | Business Litigation, Business Transactions |

It is said that we do contracts every day. From the moment we walk into a store and buy something, we are engaged in a contractual agreement with the store where we are buying their product in exchange for money. Contracts are the foundation for several businesses. Contracts are signed when engaging in a news business venture or when a company is hiring someone new. What happens when a contract is breached? What remedies exist?

What is a breach?

When two or more parties create a contract, there is an offer that is being made in exchange for an acceptance of that said offer. This creates a bargained-for consideration where the parties are aware that by creating this contract, they are bound to act according to what the contract says. In other words, the parties know that they will have to give up something in exchange for something else. That is the foundation of every contract.

However, when one of the parties does not fulfill his or her obligation, then there is a breach of that contract. This can happen when the party fails to perform on time, does not perform according to what was established in the contract or failed to perform at all.


Typically, the non-breaching party can sue to recover for damages. When a contract is made, sometimes there will be a clause that shows what actions are to be taken when either party has failed to fulfill their part of the bargain. It is advisable to speak with the breaching party and ask as to why he or she has breached. This is done to see if this is just simply a mistake done in good faith. Finally, the non-breaching party must look for ways to have the breaching party fulfill his or her part of the contract.

If all actions have been taken and still, the non-breaching party has failed to comply, then it is best to take the matter up to court were a judge will be able to look at the case and decide what should be done.

Understanding the fundamental principles behind contracts can help individuals understand what can be done when a party has failed to fulfill their part of the agreement.