What happens if I breach a contract?

Breaching a contract in Virginia is a serious matter that can have serious consequences. When a party breaches a contract, the non-breaching party can sue them for damages. A court may award damages if it finds that the breach caused financial losses to the non-breaching party. In residential real estate law, a breach of contract can occur if a buyer fails to make a payment or fails to complete the purchase on time. If a buyer breaches a contract, the seller may choose to sue for damages, or they may choose to terminate the contract. If the seller terminates the contract, they must formally notify the buyer and return any payments that the buyer has already made. A seller can also impose penalties for a breach of contract. For example, if a buyer fails to make a payment on time, the seller may impose a late fee. The amount of the fee must be stated in the contract, and it must be reasonable. In some cases, a breach of contract can lead to criminal prosecution. If a tenant breaches a lease and fails to pay rent, the landlord may be able to take them to court or sue them for damages. Additionally, if a seller refuses to complete the sale of a property after the buyer has paid in full, the seller may be found guilty of fraud or misrepresentation. These types of fraud charges can lead to civil and criminal penalties.

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What happens if I breach a contract?

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