What is a Breach of Contract in Utah?

Contracts form the basis of many business relationships in Utah. Contracts outline the parties involved in an agreement, as well as the rights and responsibilities of each party. The concept of a breach of contract is well-known but still, largely misunderstood by many people. For example, not all failures to fulfill a contractual obligation are considered a breach. Below, one of our Utah business law attorneys outlines what you need to know about a breach of contract.

When Does a Breach of Contract Occur?

A breach of contract occurs when a named party in a contract fails to perform their obligations as outlined in the agreement. However, there are times when a failure to fulfill obligations does not result in a legal breach. If there is a legitimate reason for the breach, the party may be excused from failing to fulfill their obligations and be given an opportunity to remedy the situation.

For example, if a vendor could not provide a restaurant with supplies due to flooding of the inventory after a heavy storm, the vendor may not be liable for the breach. They may, though, be responsible for repairing the damage and fulfilling their obligations as soon as possible.

Material vs. Minor Breaches

A breach of contract can either be minor or material. A minor breach, as its name suggests, is not severe and can potentially allow the contract to continue. The harmed party may or may not seek compensation for the breach. The above example of the restaurant supplier is an example of a minor breach.

A material breach, on the other hand, is much more serious. These breaches affect the core of the contract and undermine an agreement’s very purpose. When there is a material breach, the harmed party can often terminate the contract and pursue damages for the losses they sustained.

How to Remedy a Breach of Contract

There are many ways to remedy a breach of contract and the solution used will depend on the specific circumstances. The most common type of remedy are damages, which is monetary compensation that is intended to pay for the harm caused. If damages are not sufficient to cover the harm caused, the breaching party may be legally required to fulfill their obligations under the agreement.

In some cases, the only remedy is to terminate the contract. In these situations, restitution is often paid to the harmed party to return them to the position they were in prior to entering into the contract.

Our Business Law Attorneys in Utah Can Help After a Breach

If you have been harmed due to a breach in contract, you need legal help. At AGS Law, our Utah business law attorneys can determine if a breach occurred, advise on the remedies available, and guide you through the process so you suffer as little harm as possible due to the breach. Call us today at 801-477-6144 or contact us online to request a consultation and to learn more about how we can help with your case.

Source:

le.utah.gov/xcode/Title15/C15_1800010118000101.pdf