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Explain the term 'Breach of Contract'. - Leaving Cert Business - Question 7 - 2014
Question 7
Explain the term 'Breach of Contract'.
Worked Solution & Example Answer:Explain the term 'Breach of Contract'. - Leaving Cert Business - Question 7 - 2014
Step 1
Explain the term 'Breach of Contract'
Answer
Breach of contract refers to a situation where one party to a contract fails to fulfill their obligations as outlined in that contract. This non-fulfillment can occur in various ways, including not performing a duty, failing to pay on time, or not delivering goods or services as specified.
When a breach occurs, it means that the contract is incomplete and the other party may seek legal recourse. Typically, this involves the aggrieved party suing for damages that may have arisen from the non-performance. The damages sought can include direct losses, consequential losses, or even specific performance in some cases. Thus, a breach of contract leads to not just a legal obligation to compensate but can disrupt business relationships and parties' trust.