One must note that an agreement that is backed by legal consideration in the form of money or money's worth can become legally enforceable and can be breached. A domestic agreement that stands without a consideration is not legally enforceable, and thus, it cannot be subject to a breach.
What is Breach of Contract?
A breach of contract can be any kind of non-performance or abstinence from completion of a contract, non-fulfillment, or only partial fulfillment. A breach can also involve a situation where a contract's performance is not up to the mark. Another case that is breached is non-payment of appropriate consideration. A time constraint is also said to be a non-fulfillment of a contract.
You might come across several different breach cases in the news. There are several contract conditions that people tend to breach. The following are some prominent ones.
Often, it so happens that a breach of contract results into loss for the aggrieved party. For example, 'A', a cloth merchant signs a contract with 'B', a T-shirt manufacturer, to deliver a specified standard of cloth on a specified date. 'A' delays the delivery and also supplies low-grade cloth, due to which 'B' loses a purchase order from one of his customers. Here, 'B' is entitled to sue 'A' for damages.
Real estate breach, at times, involves the tort regarding factual disclosure. Factual disclosure is a necessary element of all sale contracts. When the seller is selling any goods or services to a buyer, he is expected to disclose all facts about the goods or services that are being sold. In sale of real estate agreements, real estate brokers or sellers often intentionally or unintentionally fail to make a complete disclosure of all the facts that are attached to the property.
Another externally important element of a contract is that of specific performance. Specific performance is the performance of all elements of the contract that have been agreed upon. Partial performance of duties is usually considered to be tort and a breach of specific performance. Recent breach cases involving credit related activities were based upon specific performance. In such cases, a miscommunication of contractual elements and details led to the non-performance of the contract.
Famous breach cases usually involve the non-payment of consideration. Consideration from the point of view of a businessman is money and performance or the delivery of the said goods and services. Though in most cases performance is in proportion to the consideration, there have been cases where suits have been filed for disproportionate performance and consideration. To sum up, it can be said that a performance, consideration, and time of execution, should be put down on paper before the actual execution of the contract.
On the whole, the cases of breach differ from situation to situation, and there is a probability that a combination of two cases is observed.