breach of contract

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Breach of Contract

The nonperformance of a contract by one of its parties, or the interference by the party in the other party's performance. For example, if a company has a contract to build a house and does not build it, or does not build it to proper specifications, the company may be in breach of contract. Breach of contract entitles the offended party to sue and to collect damages resulting from loss of value he/she has suffered. Depending on the nature of the breach, the contract may be irreparably harmed and the offended party may be exempted from performance on his/her part.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

breach of contract

A violation of some or all of the terms of a contract. Most contracts spell out specific remedies in the event of breach, but include a basket granting any and all other remedies allowed at law or equity.Some states have statutes making defaulting parties liable for the attorneys' fees of the other side;other states do not have such laws and attorneys'fees are recoverable only if that right is granted in the contract.

• In a real estate context, some purchase contracts provide that a breaching buyer will lose his or her earnest money but not be responsible for any other damages. If not so specified as a limitation on damages, then a breaching buyer is fully responsible for all the seller's damages, which could include losses when the property is sold for a lesser amount, costs of remarketing the property, attorneys' fees, and possibly even consequential damages such as the seller's loss of opportunity to purchase something else. In extremely rare cir- cumstances, the seller can obtain an injunction forcing the defaulting buyer to proceed with the purchase.

• If the seller defaults, the buyer may apply for an injunction to order the seller to proceed with the sale. This unusual remedy is because the law says that real property is so unique that money damages can never compensate one for its loss—only the property itself will suffice. Despite that, buyers may waive this remedy of specific performance and seek dam- ages instead. Under some circumstances they may receive both.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
145 (1854), until its third-millennium "spontaneous generation" in Abbott Laboratories, materiality had never been a required element of a breach of contract damages action in any state court.
If the failure of the insured's work has damaged another's property in addition to damage to the insured's work, that claim may very well be covered even if it is presented to the court as a breach of contract. The insurer can certainly raise the issue of coverage for a breach of contract under a general liability policy, but unless the insurer can point to policy language or case law to support its position, the issue is still going to come down to the fact that the insured's work damaged another's property.
Whenever, therefore, preachers, instead of a lesson in religion, put them off with a discourse on the Copernican system, on chemical affinities, on the construction of government, or the characters or conduct of those administering it, it is a breach of contract, depriving their audience of the kind of service for which they are salaried, and giving them, instead of it, what they did not want, or, if wanted, would rather seek from better sources in that particular art or science.
He said: "It is with regret that I feel forced into serving my notice to Derby County Football Club for breach of contract. I believe I must take this action to force some kind of conclusion to the uncertainty hanging over everyone at the club."
If the party who has agreed to pay the contract price fails to do so, that party will be in breach of contract.
District Court on June 25, 1999, by Nutritional Marketing claiming breach of contract, misappropriation, conversion and tortious interference."
After KGMB removed the case, the Federal District Court asked the Hawaii Supreme Court to answer the question whether Hawaii law recognized a tortious breach of contract claim in the employment context.
Breach of contract claims are likely to come in the form of failure to deliver goods, failure to provide services or failure to pay debts.
District Judge Ivor Bennett ruled at St Helens County Court on Merseyside that the firm had been in breach of contract when dealing with the three men during the promotion of 1993/94.
As The Wall Street Journal subsequently revealed, Wallace had not disclosed that: 1) CBS promised Wigand that the interview would not be aired without his permission; 2) he had previously been paid $12,000 as a consultant for help on an earlier 60 Minutes report; 3) CBS had agreed to indemnify him against any libel action resulting from the broadcast; and 4) CBS had refused Wigand's request to indemnify him against any legal action against him based upon his breach of contract with Brown & Williamson.
The supreme court noted that although the plaintiff alleged both mal-practice and breach of contract, the trial court had ruled that the case was not a breach-of-contract action.
This includes your state's legal remedies for breach of contract. In many states, when an insurance company acts in bad faith, by not paying legitimate claims, for example, the legal damages owed to the insured person can be a much larger sum than what was originally owed for the claim.

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