It might come as no surprise that there may always be a certain level of risk to entering a legally binding agreement with another party. While business contracts might act to provide protection to all parties involved, if one party fails to uphold its part of the arrangement, the fallout thereof may lead to intense disputes. Business owners in Pennsylvania might benefit from knowing some examples of types of business contract breaches and the steps to take to protect their interests when facing such challenges.
Types of contract breaches
Experts indicate that there are four common types of contract breaches that business owners might find it helpful to understand. One common example pertains to a material breach of contract, which could occur if there is a significant difference between what is required via the contract and the type of service provided. This may involve a scenario in which one party fails to perform responsibilities in accordance with the contract terms or in a timely manner.
A minor or partial breach of contract may pertain to a scenario in which one party fails to fulfill some portion of its responsibilities while providing services. An anticipatory breach of contract is a type of violation that might occur should one party indicate that it will not uphold its end of the agreement. The fourth category pertains to an actual breach of contract, which involves a situation in which one party has already violated the terms of the agreement, whether in refusing to comply with the terms or providing incomplete or unacceptable services.
Addressing a breach of contract
Business contract breaches continue to be a leading cause of dispute and issues stemming from similar matters can be hotly contested at times. Business owners who face similar concerns and have questions about their legal rights could find it helpful to consult with legal counsel for advice on their options and the best course of action to take. An attorney in Pennsylvania can provide a client with guidance in making informed choices about the situation and assist in creating a strategy with which to seek the most favorable outcome achievable via the appropriate channels.