Contracts are among the crucial documents when running a business. They set out obligations between you and another person that will impact your profits and corporate image. Though legally binding, you are not guaranteed that the other person in your contract will hold their end of the deal. As a business owner, there is a real risk of contract breach. Fortunately, a Toronto litigator might get you remedies for the violation that affects your business contract. Here are the common forms of breach of contract you might deal with at some point.
Material Breach
This occurs when a party receives a different result or less than what is agreed upon in a contract. The breach can also include the failure to handle the obligations specified in a contract. In a material breach, a Toronto litigator can pursue compensation related to the indirect and direct consequences of the action by the other party.
Immaterial Breach
This is also called a partial or minor breach. It encompasses a case where you receive the deliverable in your contract, but there is a part of the obligation that remains unfulfilled. In an immaterial breach, you can only pursue damages if you have proof of the financial loss you suffered from the same.
Anticipatory Breach
Though the breach has not occurred in this case, one party has shown that it will not accomplish its obligations. An anticipatory breach might occur of the other party explicitly states that they will not deliver. The breach can also be founded on a party’s actions that show he/she is unwilling or unable to deliver.
The most common legal remedy you will get in any of the above forms of contract breaches is monetary compensation. With an excellent Toronto litigator, you can also get an injunction for specific performance. This is often the case if the monetary compensation will not adequately cover the breach.
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