If you receive a notice of anticipatory breach of contract because of a claim of material breach against you, you’ve got a contract dispute. If you intended to repudiate the contract, then it’s probably time to retain a good contract law attorney, if you haven’t already.
If the breaching party willfully broke the contract, or if the breach resulted from deceit, unfair dealing, or fraud, then the court will likely find the breach material. On the other hand, if the breach was due to circumstances beyond the control of the breaching party, the court will be less likely to find the breach material.
But how do courts determine what constitutes a material breach of contract? They refer to a legal treatise called the Restatement (Second) of the Law of Contracts. Completed in 1979, this treatise is one of the most frequently cited in the entire United States justice system – every first year law student in the country learns about it. In combination with the Uniform Commercial Code, the Restatement governs all contracts and sets out the following criteria for a material breach of contract.
We all try to avoid becoming involved in contract disputes, whether as an individual or a business. Unfortunately, that’s not always possible. If you’re dealing with a breach of contract, a contract dispute is sometimes the only way to ensure that your interests are protected. First, let’s learn a bit more about contracts and contract disputes. Then we’ll take a look at some tips for avoiding them in the first place.
If there in one thing essential to businesses it is contracts. Contracts are the glue that hold together deals, agreements, and understandings between partners, other businesses. Contracts hold people accountable and when they are breached, real damage can be done.
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