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 ?
In resolution 1441 the Security Council determined that Iraq has been and remains in material breach of resolution 687, because it has not fully complied with its obligations to disarm under that resolution.
in the end if the Security Council acknowledges a material breach by Iraq in some way.
He was quoted as having argued that only another invasion of Kuwait would constitute a material breach of the resolution.
DONG Energy and Bayerngas no longer have confidence in the supplier consortiums ability to deliver the platform and hold the consortium in material breach of its contractual obligations.
These Shares are subject of a counterclaim by BRHI and SPI in the arbitration case, and if the sale of the Shares is completed, the Petitioners will not be able to get back the Shares and they will not be able to satisfy any judgment for damages that they may be able to obtain against GGAM in their ongoing arbitration proceedings on the termination of their MSA because of GGAM's uncured material breach of the MSA," Bloomberry said.
The company said that the termination was the result of an uncured material breach of the agreement and it is continuing its search for a potential acquisition target and will keep its shareholders apprised of its progress.
HSE stressed that law-abiding businesses will not pay a penny and that the HSE will only recover costs from duty-holders who are found to be in material breach of health and safety law.
A Pentagon spokesman has told him, "You are in material breach and violation of the non-disclosure agreements you signed", and added the Pentagon is considering "all legal remedies".
The HSE has published guidance showing that farmers will be charged pounds 124 per hour for an inspection where a material breach is discovered.
So war was declared in a fragile region because of fantasy weapons and yet the preferential treatment accorded to Israel by the US and UK governments means they have been able to proliferate WMD uninspected by extraneous forces and conditions and when, since 1967, they have been in material breach of UN Resolution 242 which requires them to withdraw their armed forces from Palestine.
On November 8th, the Security Council unanimously passed Resolution 1441, finding Iraq in material breach of its obligations, and vowing serious consequences if Iraq did not fully and immediately disarm.
For example, the trial court must consider the employee's allegations that the employer committed a prior material breach of a dependent covenant in the contract in determining whether the employer has a substantial likelihood of success on the merits.

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