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.

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.

References in periodicals archive ?
By a parity of reasoning, claims of discrimination and retaliation made under Title VII, the ADA and the ADEA, may also be the basis for establishing a material breach of an employment contract.
Lord Goldsmith's statement continued: 'The Security Council also decided in resolution 1441 that, if Iraq failed at any time to comply with and co-operate fully in the implementation of resolution 1441, that would constitute a further material breach.
The Vienna Convention of 1986 (Article 60) provides that, in the case of "A material breach of a bilateral treaty by one of the parties entitles the other to invoke the breach as grounds for terminating the treaty or suspending its operation in whole or in part.
The HSE have defined a material breach as follows: "A material breach is when, in the opinion of the HSE inspector, there has been a contravention of health and safety law that requires them to notify the dutyholder, in writing, of that opinion.
It also recalls that council decided on November 8 'that false statements or omissions' in its 12,000-page declaration to UNweapons inspectors 'and failure by Iraq at any time to comply with, and co-operate fully in the implementation of that resolution, would constitute a further material breach.
Believes that weapons inspectors should be given more time and that Iraq is not yet in material breach of UN resolution 1441 and therefore military action is, as yet, unjustified.
Furthermore, Saddam Hussein himself must be made to unequivocally understand that it will be considered a grave material breach if he fails to order such full, unconditional and no-reprisals cooperation accordingly.
Any breach under this paragraph is considered a material breach.
The court therefore concluded that there was not substantial compliance with the contract, constituting a material breach of the contract.
A pounds 124 per hour fee (reduced from pounds 133 per hour) would apply when there is a material breach of law requiring a formal regulatory intervention through a letter, email, instant visit report or notice of prosecution (up to the point that court proceedings start).
Home Office Minister Beverley Hughes said: ``Although the report concludes that there has been no material breach of contract by Landmark,it is clear that what happened in Liverpool is completely unacceptable.
The new resolution recalls that ``Iraq has been and remains in material breach of its obligations'' under UN resolutions.

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