Skip to content

What is a breach of contract?

A breach of contract occurs when a party to a legally enforceable and binding contract does not fulfill their contractual promise. This can happen when a party to the contract fails to perform any terms in the contract, written or oral. This is known as ‘non-performance’.

The breach of contract can be classified as either minor or material, depending on the severity of the breach and whether it was in regards to an essential term or condition in the contract. See our article for the different types of breach of contract.

The available remedies depend on the nature of the breach. Depending on the circumstance, the aggrieved party can sue the other party for damages to compensate for any losses as a result of the breach, or a court can order for specific performance, where the other party is required to fulfill whatever promise they failed to perform.