What is a Breach of Contract?

It is always important to have the right contract in place for any transaction. No matter how good the relationship between the parties or the preparation of the paperwork, you simply cannot stop the other party breaching the contract. A “contract” does not have to be a written document in order for it to be breached. A breach can be of a verbal, written (express) or an ‘implied’ term of a contract. To sue for breach of contract, you must be able to : 

• Prove that there was a contract in existence – It would need to be proven that a legally binding contract was in place and that it had been breached.
• Prove that the other party did not perform their part of the contract satisfactorily – terms and conditions of the contract need to be clarified and compared to what actually took place.
• Prove that you suffered a loss as a result – the innocent party must prove there was a loss because of the breach and this loss requires compensation. 

A breach typically therefore occurs: 

• If a party refuses to perform their duties set out in the contract
• If the work carried out is defective
• Due to not paying for a service or not paying within the limits specified
• From a failure to deliver goods or services
• From being late with services without a reasonable excuse.