business law :Breach of Contract

Topics: Contract, Breach of contract, Damages Pages: 2 (721 words) Published: October 28, 2014

Question TWO
What is a "Breach of Contract"?
A business contract creates certain obligations that are to be fulfilled by the people or companies who entered into the agreement.  In the eyes of the law, a party's failure to fulfil an end of the bargain under a contract is known as a "breach" of the contract. Depending on the specifics of the contract, a breach can occur when a party fails to perform on time, does not perform in accordance with the terms of the agreement, or does not perform at all. Accordingly, a breach of contract will usually be categorized as either "material" or "immaterial" for purposes of determining the appropriate legal solution or "remedy" for the breach. To illustrate how a breach of contract might happen in the real world, Botak, who owned a rare vintage car offered to sell it to his friend Pendek. The offer was made through a letter dated 1 May 2011, which was posted on the same day. The letter expressly stated that the offer was only open until 10 May 2011. Pendek received the letter on 5 May 2011 and immediately posted his letter of acceptance to Botak. Due to a postal delay, this letter reached Botak only on 12 May 2011. Meanwhile, on 11 May 2011, Botak, not having heard from Pendek, sold the car to someone else. What Happens After a Contract is Breached?

When a breach of contract (or when the alleged violation), one or both parties may wish to have a contract, its terms, or any alleged breach of financial harm may try to recover. If more than disputes arising from the contract and informal ways to address failures, the most common way to resolve contract disputes and enforcing contracts through litigation and court system. If the issue is less than a certain dollar figure, the parties may be able to use the "Small Claims Court to resolve the issue. Court proceedings are formally involved in contract disputes only choice for individuals and businesses. The parties may agree to review the contract dispute mediator, or may...
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