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Breach of Contract

A breach of contract occurs when one party fails to fulfill its obligations under a contract without a lawful excuse.

How It Works in Contracts

Breaches can be material or minor. Material breaches typically allow termination plus damages; minor breaches usually entitle the non-breaching party to damages only.

Examples

  • A vendor delivers products 3 months late, missing a launch
  • A contractor uses a slightly different paint color than specified
  • A party fails to make payment by the due date

Related Terms

  • Indemnification
  • Limitation of Liability
  • Termination Clause

Related Resources

  • Browse the full contract glossary
  • Free contract templates
  • Snifty Contracts blog
  • Contract tracking software