Contract Cancellation Due to Breach of Contract
Contract Cancellation due to a Breach of Contract
Submitted by
Victoria Wyatt
Prepared for
Dr. Maverick
Acquisition Law
Spring 07
18 May 2007
CERTIFICATE OF AUTHORSHIP: I certify that I am the author. I have cited all sources from which I used data, ideas, or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course.
______________________________________________ Signature Date
Overview There are many ways to terminate the obligations of a contract. Most often, parties conclude their contract obligations by performing them. However, sometimes problems arise and parties cannot or will not complete their obligations under the contract. When this occurs, contracts may be terminated by reasons of rescission, breach, or impossibility of performance, (Bennett, 2007). The purpose of this paper is to discuss contract cancellations due to a breach of contract. Definition of a Contract A contract is a legally enforceable agreement between two or more parties which creates a duty for each party to do something (e.g., to provide goods at a certain price according to a specified schedule) or a duty not to do something (e.g., to divulge an employer 's trade secrets or financial status to third parties), (Binder, 2001). If one party fails to act as promised, and the other party has fulfilled the duties under the contract, that party is entitled to legal relief. For example, Company A agrees to pay Company B $16,000 for computer equipment. Company B provides the equipment as required in the contract. Company A admits that the equipment meets the contract specifications but fails to pay within a timely manner. Company B can sue for damages. Generally, the non-breaching party 's remedy for a breach of contract is money damages that will put the non-breaching party in the position that it would have had if the contract had been performed.
Submitted by
Victoria Wyatt
Prepared for
Dr. Maverick
Acquisition Law
Spring 07
18 May 2007
CERTIFICATE OF AUTHORSHIP: I certify that I am the author. I have cited all sources from which I used data, ideas, or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course.
______________________________________________ Signature Date
Overview There are many ways to terminate the obligations of a contract. Most often, parties conclude their contract obligations by performing them. However, sometimes problems arise and parties cannot or will not complete their obligations under the contract. When this occurs, contracts may be terminated by reasons of rescission, breach, or impossibility of performance, (Bennett, 2007). The purpose of this paper is to discuss contract cancellations due to a breach of contract. Definition of a Contract A contract is a legally enforceable agreement between two or more parties which creates a duty for each party to do something (e.g., to provide goods at a certain price according to a specified schedule) or a duty not to do something (e.g., to divulge an employer 's trade secrets or financial status to third parties), (Binder, 2001). If one party fails to act as promised, and the other party has fulfilled the duties under the contract, that party is entitled to legal relief. For example, Company A agrees to pay Company B $16,000 for computer equipment. Company B provides the equipment as required in the contract. Company A admits that the equipment meets the contract specifications but fails to pay within a timely manner. Company B can sue for damages. Generally, the non-breaching party 's remedy for a breach of contract is money damages that will put the non-breaching party in the position that it would have had if the contract had been performed.
References: Bennett, Sherri (2007). Contract Termination. Retrieved 7 May 2007 from http://consumer-law.lawyers.com/Contract-Termination.html. Binder, Perry (2001). Binder on Contracts. Retrieved 27 March 2007 from http://www2.gsu.edu/~rmipzb/contracts.htm. (2000). Binding Contracts and Legal Actions Predicated on Breach of Contract. Retrieved 7 May from http://www.stimmel-law.com/articles/contracts.html (2007). Breach of Contract. Retrieved 27 March 2007 from http://en.wikipedia.org/wiki /Breach_of_contract. (1999). Consumer Transactions with Statutory Contract Cancellation Rights: Legal Guide K-9. Retrieved 7 May from http://www.dca.ca.gov/legal/k-6.html (2005). Nonperformance & Breach of Contract. Retrieved 27 March 2007 from http://www.lectlaw.com/files/bul08.htm. Radcliffe, Mark and Diane Brinson (1999). Contracts Law. Retrieved 27 March 2007 from http://library.findlaw.com/1999/Jan/1/241463.html. Trevelline, Michael (2003). General Outline of Breach of Contract Law. Retrieved 7 May 2007 from http://www.mjtlegal.com/legal_3_breach_cont.shtml