People sign contracts in Florida all the time for both business and personal reasons. You might have signed a contract when someone did work on your house or when you agreed to work with someone on a business venture. The purpose of a contract is to ensure that if one party fails to fulfill their end of the deal, there is a legal remedy for the other party.
Here are the four main types of contract breaches:
#1: Minor breach
A minor breach of contract is sometimes referred to as a partial breach of contract because it doesn’t involve a breach of the entire agreement. If one party fulfilled almost all of their obligations but failed to perform one aspect of the contract, this would be a minor breach. When there is a minor breach, the injured party can only sue for damages if the breach had a financial consequence.
#2: Material breach
A material breach of contract is a significant event that causes obvious financial losses to the injured party. If one party failed to fulfill most or all of their obligations under the contract, this would be a material breach. Under contract law, timing may be incredibly important for the fulfillment of certain promises. Therefore, lateness can sometimes be considered a material breach.
#3: Anticipatory breach
An anticipatory breach of contract occurs when one party makes it explicitly known that they do not intend to fulfill their contractual obligations. For example, if a contractor lets a business know that they won’t be continuing any more work on a building job, the contractor may be sued for an anticipatory breach. An anticipatory breach may also occur when one party’s actions indicate that they won’t be completing their contracted work.
#4: Actual breach
An actual breach of contract is a breach that has taken place already and caused damage. This may occur because the breaching party either doesn’t complete their contracted work or completes the contracted work incorrectly. A party to a contract may decide to file a lawsuit for this or any of the other types of contract breaches.