Breach of Contract
When one party fails to fulfill their promises or obligations under a legally binding agreement.
A breach of contract happens when someone does not do what they agreed to do in a contract. The breach can be major (called a “material breach”) or minor. A material breach goes to the heart of the agreement, such as a contractor not doing any work after being paid. A minor breach is a smaller failure that does not destroy the purpose of the deal, such as finishing a project a few days late.
In Minnesota, the person harmed by a breach generally has six years to file a lawsuit. For contracts involving the sale of goods, the deadline is four years under the Uniform Commercial Code.
Why it matters: If someone breaks a contract with you, you may be able to recover money damages or get a court order requiring them to fulfill their obligations. You also have a duty to take reasonable steps to limit your losses.
Example: A home repair company agrees to install a new roof by June 1 but never shows up. The homeowner hires another company at a higher price. The homeowner can sue for the difference in cost as breach of contract damages.
Business disputes, landlord-tenant issues, purchase agreements, service contracts