Ridout Barron


How do you define a breach of contract?

We create business contracts to define specific obligations that must be fulfilled by the parties that agree to the contract. Under the law, if one or more parties fails to fulfill a certain aspect of the agreement, the party or parties will be in breach of the contract. Considering how many kinds of contracts there are, and how many things can go wrong with an agreement, breaches of contracts can happen in a lot of different ways in Calgary.

Some of the most common contract breaches involve a party's failure to perform on time, a party that deviates from the terms of the agreement and when a party does not fulfill its obligations at all.

As an example, let's say one company contracts with another company to deliver a certain number of products on a specific date. However, the goods arrive late. This kind of contract breach would be referred to as "immaterial" because the company that was to receive the goods did not actually suffer financial damages. Meanwhile, if the contract has clear language about the timeliness of the delivery and that it absolutely must be delivered on the specific day, then the late arriving product might be considered as "material" — especially if the late product resulted in a loss of productivity and business by the company that ordered it.

When a Calgary business can show that another business is in breach of contract, and the damages are easily quantifiable, the injured party may be able to pursue a claim for financial relief relating to the breach of contract in court.

Source: FindLaw, ""Breach of Contract" and Lawsuits," accessed Sep. 18, 2015

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Ridout Barron

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