Breach of Contract

A breach of contract is when one party does not live up to the performances stipulated in the agreement, or they do something to keep the other party from performing their part of the contract. Breach of contract often occurs as an attempt at cost-cutting by one side or the other, as many people will attempt to do a cheaper or less thorough version of something in hopes of saving money.

Ways to Breach a Contract

There are multiple ways to breach a contract, and they carry with them various penalties. A minor breach, for example, is one that is essentially immaterial and has no change in the value of the contract. Because the value change is zero, there are no repercussions.

A material breach is a change or shortcoming in the performance of one party that results in a tangible difference (lessening) in value. Using wood instead of metal to build a structure, for example, would be a way to try and cut costs, but would change the value of the performance. The contract holder would have a right to recoup the cost of changing the wood to the agreed-upon metal.

A fundamental breach is a blatant disregard for the contract or a performance so bad that it entitles the other party to void all performance requirements, in addition to suing for damages.

Contact Us

If you feel that you have been the victim of a breach of contract, contact the Austin labor attorneys of The Melton Law Firm at (512) 330-0017.