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What are the common causes of breach of contract?

On Behalf of | Apr 9, 2024 | BUSINESS & COMMERCIAL LAW - Contract Disputes

When parties agree to the terms of a contract, they demonstrate the intention to fulfill certain obligations or promises, subject to various conditions. In business, this often includes exchanging goods, services, money or other considerations as outlined in the text of a contract.

However, not all contracts are fulfilled as intended and breaches can occur due to various reasons, including the following.

Ambiguous contract terms

When the language used in the contract is unclear or open to interpretation, it can create confusion about what is expected from each party. This ambiguity may arise due to vague language, conflicting clauses or poorly defined terms. As a result, one party may inadvertently fail to fulfill their obligations as intended leading to a breach of contract. Resolving disputes stemming from ambiguous contract terms often requires careful interpretation of the language used and may involve legal intervention to clarify the parties’ intentions.

Failure to meet set deadlines

Failure to meet set deadlines is another common cause of breach of contract. When parties agree to specific timeframes for the completion of tasks or delivery of goods or services, failing to adhere to these deadlines can result in a breach. This failure may occur due to various reasons such as inadequate planning, resource constraints, unexpected obstacles or negligence. Regardless of the reason, missing deadlines can disrupt the flow of the contract’s performance and may impact the other party’s ability to fulfill their obligations or achieve their objectives.

Force majeure events

Force majeure events are unforeseeable circumstances that prevent one or both parties from fulfilling their contractual obligations. These events are typically beyond the control of the parties and can include natural disasters, wars, terrorist attacks, government actions or other extraordinary occurrences. When a force majeure event occurs, it may make it impossible or impractical for one or both parties to perform their obligations under the contract.

When dealing with breach of contract, seeking legal counsel can help an affected party to determine the appropriate course of action to remedy the situation and protect the rights and interests of the parties involved.