What is a breach of contract?

A breach of contract is when one party fails to follow through on the promises they agreed to in a contract. In North Carolina, a breach of contract can happen in a variety of ways such as not delivering goods on time, failing to pay what was agreed upon, or providing substandard goods or services. Additionally, contractual obligations must be met in a timely manner to be considered valid. If a breach of contract occurs, the non-breaching party has the right to sue for damages. Damages could include the cost of the product or service that was not delivered. For example, if a customer purchased a car and the seller failed to deliver, the customer may sue for the purchase price plus added damages. In addition, the non-breaching party may be able to recoup attorney fees, lost wages or other costs related to fixing the breach. Breaches of contract can also be classified as “material” or “immaterial.” A material breach is a major violation of the agreement, while an immaterial breach is a minor violation. For instance, if a contractor fails to properly install a door, this could be considered a material breach as the customer will not be able to use the door. On the other hand, if the contractor failed to clean up after the work, this would be considered an immaterial breach. In either case, the non-breaching party may still be able to pursue damages. If a breach of contract does occur, it is important to speak to a licensed lawyer to determine the best course of action. In North Carolina, the lawyer can help determine the type of breach, the level of damages that can be recovered, and other options for resolving the situation.

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