Skip to Content
Call or Text Today! 703-520-7571

Common Contract Breaches


Wrongful Termination Lawyers

A business contract serves many purposes. As an owner or operator of a business, it is crucial that you understand what type of language is appropriate for each situation. It may also prove beneficial to familiarize yourself with the common ways someone can break a contract and what you can do about it.

A break in a contract is called a breach. It may invalidate the entire document, or it may only apply to part of it. Find out more about common breaches that occur and some of the remedies you may have should you find yourself dealing with one.

A Breach in Performance

An agreement between you and another business doing work for you is the most common type of contract. Some examples of this include:

  • Construction
  • Vendor supplies
  • Distribution and sales
  • Services

When one entity is obligated to perform a service for the other, the agreement should detail what these are. It should also set out a timetable for when each benchmark of the process is to occur. A breach in performance means that the party performing the service does not do what it must per the contract. This may mean missing a delivery date without notice or completely disappearing without doing anything. Depending on the severity of the breach, the contract may be void.

A Breach in Non-Compete

Employees are sometimes required to sign contracts before getting on the payroll. For example, if your company deals with sales or trade secrets, a contract regarding confidentiality and work-product would be common. Some level of employees may also be required to sign a non-compete clause or agreement. This means that should they decide to leave the company’s employ, they are prohibited from working for a competitor within a defined distance. A non-compete is meant to protect your company from a disgruntled worker taking what you taught them and taking it to your competitor for their benefit. A non-compete breach may result in your taking the employee and their new employer to court for compensation.

A breach in any contract may result in a court action. Since a failure to perform something promised in a legal document may put a business at risk for loss, it makes sense that litigation may become necessary. However, some breaches, such as that of a non-compete, may result in serious damage to your company’s growth and reputation. As such, you may want to have a business lawyer on standby to assist with any contract matters. Get in touch with one near you for help.

The lawyers at Cohen & Cohen, P.C. know more about Wrongful Termination Lawyers in Virginia.