breach of contract
Definition
A breach of contract happens when one party in a legal agreement fails to hold up their end of the deal without a valid legal excuse. This could mean someone didn't do what they promised, did it late, or did it so poorly that it doesn't count as fulfilling the agreement. The party who got shortchanged typically has the right to sue for damages or demand the other party follow through.
Example
You hire a caterer for your company event and pay them a deposit, but they never show up on the day of the event. That caterer has breached your contract, and you could sue them to get your deposit back plus any extra costs you had to cover to find a last-minute replacement.
Watch Out
Always get your contracts in writing because proving a verbal agreement in court is extremely difficult and expensive.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.