Meaning of Breach of contract
A Breach in contract happens when one of the parties fails to complete their side of agreement. A contract pens down a company’s part of duties, which they have to fulfil overtime. If they do not accomplish their part, the party can be sued for breach of contract. This is where a company can file for a lawsuit or take other legal actions with the help of a corporate lawyer.
A breach of contract can be partial or complete and by accessing the situation and complexity of the contract, a court decides on the consequences.
What are the different ways a company can breach the contract
A party can breach the contract in three ways:
Firstly, there is an anticipatory breach, where the party who is under breach declares to the other party that they will not fulfil part of the contract. Once the party knows about this, they can take further action.
Secondly, there is a minor breach, which occurs when a party fails to complete the term of condition of the contract. In this whole contract, terms are not violated; however, the party fulfils the rest of the terms. This happens when there is some error in the contract related to date, price or typo in contract terms.
Thirdly, there is a material breach, which is a commonly occurring breach of contract. This happens when a contract breach is quite extensive, that it calls off the whole contract because it makes the performance of either party difficult.
Apart from these, a contract is breached when it is not properly formed, is illegal or there are some mistakes in the contract.
What are common defences for contract breach?
Many defences can be lifted against contract breach. The most common type of defence is:
Frauds – this happens when one of the parties intentionally gives the other party the wrong impression about terms of the contract just to convince them to sign.
Capacity – this happens when a party cannot fulfil the terms of the contract, then this kind of defence can be used against contract breach.
Illegal contract – if a contract is illegal, then a party can claim this as a defence.
Commit of mutual mistakes – if both the parties are not able to understand the conditions of contract this can be used as a defence against contract breach.
Threat – if one of the party forces other party to sign the contract, through threat or against their will then this defence can easily nullify the contract.
The dirty hands – when both the parties have not fulfilled the terms of the contract, here a legal action cannot be taken against one party since both are at fault.
Should you be consulting a corporate lawyer?
Though not all contract breach requires taking a legal action, both the parties can calmly sit and discuss the matter. However, many terms of the contract can be complex, which requires the assistance of a lawyer or attorney.
Usually, corporate lawyers, who assist in negotiating, drafting, reviewing and editing the conditions of contracts, handle these kinds of matters. They work on drafting terms to avoid in such a way that there are no disputes in the future.
For instance, a corporate lawyer in Dubai will handle the matter in case your company is being sued for breach of contract. They will strategise and provide remedy to give your company a way out. They can also represent your company in court.
To sum up
An attorney can easily handle the risk involved in signing a contract by briefing the pros and cons of it. Always check if the lawyer holds good experience and reviews before hiring them to represent your company. For consulting corporate law firms in Dubai, all you have to do is go through the review and experience they hold for handling similar cases, this you can do by checking previous records of the lawyer and firm.