What causes a breach of contract?Ī breach of contract is caused by a contracting party’s reluctance or inability to fulfill the terms they originally agreed to within the contract. For this, you’ll need to be able to demonstrate, using evidence, that certain obligations existed under the contract and that these obligations were either not performed or have not been delivered to a satisfactory standard. Next, you’ll need to be able to prove that specific terms within a contract have been breached. If there wasn’t a contract in the first place, then it is impossible for there to have been a breach. Breach of contract elementsĪnother way to understand what a breach of contract is is to understand the various elements of a contract breach, and when a business’ action or inaction falls into the definition of one.įirstly, the contract must have existed and been legally binding between the parties. What is a breach of contract? Breach of contract definitionĪ breach of contract is an instance where one or more parties to a contract either actively breaks or fails to fulfill the terms outlined within a legally binding contract.Ī contract breach can broadly be defined as a violation of any agreed-upon terms and conditions, so the scope of a contract breach can cover everything from late delivery of certain goods or services to missed payments. This Juro deep-dive explains exactly what a breach of contract is, why they’re happening and how implementing a contract management solution can help your business to prevent them. Without a robust system of record for contracts, key dates can be missed and deliverables can be forgotten, occasionally resulting in a breach of contract.īreaches of contract can cause relationship breakdown between parties, but they can also come at a significant financial cost. As your business scales and your contract volumes increase, managing contract obligations can be a challenge.

In breach of contract meaning