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What are examples of contract disputes in California?

On Behalf of | Oct 20, 2021 | Contract Disputes |

Contracts are a common way for California businesses and residences to conduct business. With every contract comes terms and conditions that, if not met, can be breached or broken.

When one party believes that the rules of the contract were broken, it’s called a contract dispute. Legal action often follows contract disputes when one party takes the other to court for the losses or damages. There are several types of contracts depending on the business and nature of the agreement. It’s important to know the types of contract disputes before contacting a lawyer about pending litigation.

What are the types of contract disputes?

There are different classifications of contract breaches depending on the severity of the rules broken. Usually, they’re split into two types: minor and material. An example of a minor breach of contract is not receiving an item or service by the due date. In this case, it’s considered a minor breach of contract because the terms were still more or less met.

A material breach happens when the provided service is different than what was agreed upon. This would be like the wrong product being delivered from what was noted in the contract. With material breaches, the terms and conditions of the contract weren’t met and might impact the business’s finances. This is the point where one or both parties might look to terminate the contract.

Can a contract be breached in advance?

Breaches can impact one or both parties in the contract. However, the impact will depend on whether it’s an actual breach or an anticipatory breach. If a business suspects that the other party in the contract might not meet their end of the deal, that’s an anticipatory breach.

There are actions that can be done to minimize losses in anticipation of a breach. It’s important to carefully consider all of the options before trying to terminate the contract.