What is a breach of contract?

A breach of contract occurs when one of the parties involved neglects or fails to fulfill the obligations stated in a contract. In Florida, a breach of contract can consist of either a “material” or “immaterial” breach. A material breach is one that substantially affects the value of the performance owed by one of the parties. For example, if one party to a contract fails to deliver goods that were promised, that would be a material breach of contract. An immaterial breach is one that does not substantially affect the value of the contract or the obligations of the parties. In Florida, an immaterial breach may be remedied with a request that the party fulfill the terms of the contract. When a breach of contract occurs in Florida, the aggrieved party can seek damages in court. The goal is to put the party in a position in which they would have been if the breach had not occurred. The remedies for breach of contract may include compensatory damages, punitive damages, specific performance, rescission and restitution. Compensatory damages cover the losses incurred by the party due to the breach, while punitive damages are intended to punish the party that caused the breach. Specific performance is an order from the court to fulfill the obligations of the contract. Rescission allows the non-breaching party to cancel the contract, while restitution is a remedy to restore the status quo between the parties.

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