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Breaking a contract can mean facing legal action

Signing a contract means that you are agreeing to the terms of contract. This means that you agree to keeping your end of the deal or you will have to comply with the penalties that are included in the contract. When a contract isn't complied with, either or both of the parties can file a legal claim in civil court for breach of contract.

There are two types of breaches that can occur with contracts. One is a minor breach, which means that there aren't any serious repercussions of the breach. The other is a material breach, which means that the one of the parties had to deal with serious repercussions or a different result than what was expected from the contract.

Taking a case like this to court means that you need to be prepared to show what type of damages you suffered because of the contract breach. This might not always be easy, but there are many different things that you can review if you need to make this claim.

You should review how the breach impacted your business. Some contract breaches can lead to your business losing money. For example, if a renovation of your company takes longer than what was planned, you might not be able to have business volume that you need to maintain your business financially.

Another consideration is the costs that you incurred because of the breach. The likelihood that the contractor will complete the project is another consideration. The court will look at a host of factors that come with a contract breach to make a determination about the case.

Source: The University of New Mexico, "Breach of Contract," accessed Jan. 10, 2018

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