A contract is a written document that outlines the legal obligations agreed upon, and the signing parties must mutually fulfill that. Most of the time, we see that the contract is completed and the agreement outlines within that document have been satisfied, making both parties happy. Unfortunately, there are times one party to the contract fails to make good on their end of the agreement, not honoring the signed agreement. In legal terms, failure to fulfill the contract’s obligations is considered a ‘breach of contract”. In addition to the frustration and the overall work not being completed, breach of contract can often lead to damaged relationships, trust issues between the two parties moving forward, financial loss (large or small), loss of business, and many more. The aggrieved party can begin responding to a breach of contract by working with a contract or litigation lawyer. Taking legal action against the other party can compel fulfillment of the contract or recover financial losses that may have occurred due to the broken agreement. Additionally, depending on the circumstances, the aggrieved party may be relieved of the requirement to fulfill that party’s portion of the contract.
Contracts are drafted to contain many specific terms and may impose requirements on each party to agree or disagree with the terms. Failure to satisfy one of the required terms does not trigger a breach of contract would enable the aggrieved party to cancel the contract and regain their financial losses. With that being said, t is vital to determine the differences between material and non-material breaches, which guide the outcome of options available to you. For example, suppose you have agreed to a contract and suspect that the other party fails to fulfill their obligations. In that case, a. Enara Law business lawyer can examine the situation and help you understand your legal options.
Let’s define the basic terms of material and non-material, and a material breach is a significant failure to complete obligations according to the terms of the agreement. This breach hits right at the heart of the contract, involving failure to perform the essence of the contract and ultimately rendering the agreement broken. On the other hand, a non-material breach means that one of the minor details of the arrangement, like an ancillary provision or a minor term, has been broken, but it does not affect the center focus of the contract.
Regardless of the situation, a Phoenix business attorney can distinguish whether you are the victim of a material or non-material breach of contract, inform you of your rights and legal options, and assist in making a breach of contract claim to regain your losses and move forward.
With their decades of experience in Arizona business law, the attorneys at Enara Law PLLC know how to assess situations and resolve conflicts. If you face a breach of contract and need assistance regaining your financial losses, our team is ready to confidentially review your case and discuss your options with no obligation. Call our office today at (602) 687-2010 or email us at [email protected].