Breach of the Contract and Remedies for It

In: Business and Management

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Breach of the Contract and Remedies for It
Breach of the contract is a situation when buyer or seller does not perform its obligations those are mentioned in the contract. By this way, there are some remedies for breach and the party which one does not fulfill his contractual promise should compensate all damages after breach.
The main types of breach of contract are minor, material, fundamental, and anticipatory.
Minor is a breach of contract that is less severe than a material breach and it gives the harmed party the right to sue for damages but does not usually excuse him from further performance. That means when a party to the contract fails to perform a part of a contract and the fail is very small and all parties can otherwise fulfil any remaining contractual obligations very easily without any consequences.
Paul and Bill, two business partners, hire SevenSeas, Inc. to build them a boat. The contract says that SevenSeas will build the boat according to Paul and Bill’s specifications and that Paul and Bill will pay SevenSeas $2 million. One of the specifications that Paul and Bill lay out is that the boat must contain bullet-proof windows. SevenSeas builds the boat exactly according to specifications except for the windows, for which SevenSeas accidentally uses ordinary glass. Using the guidelines laid out above, the court would most likely rule that SevenSeas’ breach was minor: SevenSeas has basically finished performance, the breach was accidental, Bill and Paul have basically received the benefits they contracted for, they can be compensated for the imperfect performance and it would probably be very hard on SevenSeas if the court ruled that the breach is material so that Bill and Paul do not have to pay the contract price.
Material breach after failing fulfilment of the contract by one part has more serious consequences and damages. A material…...

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