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Know the 4 Elements of a Breach of Contract & How to Make a Claim
When entering into a contract, it is essential to understand what constitutes a breach of contract. This knowledge not only prepares you for possible legal challenges but also equips you with the tools to safeguard your interests. This article delves into the core elements of a breach of contract claim, providing insights and expert analysis to benefit you in any contractual agreement.
Understanding Breach of Contract
A breach of contract is a term used to describe when one party in a valid agreement neglects or fails to execute their contractual responsibilities, devoid of any legal justification. Contract breaches can be categorized into four types:
1.Actual Breach
An actual breach represents a scenario where the contract violation has already transpired. Here, the offending party either partially or incorrectly fulfills their contractual duties, sometimes outright refusing to abide by the contract’s stipulations.
2.Material Breach
A material breach is observed when a party entirely fails or delays to honor their contractual commitments. This type of breach deprives the other party of the intended benefits or outcomes, significantly impacting the contract’s core purpose.
3.Minor Breach
Also known as a partial breach, this occurs when a contracting party incompletely fulfills their obligations. Although the breach is minor, the other party still receives some level of benefit or deliverable from the contract, albeit not to the full extent.
4.Anticipatory Breach
An anticipatory breach happens when a party explicitly expresses, through words or actions, their intent not to meet their future contractual duties. In these cases, action can be taken against the potential breacher even before the actual breach occurs.
Elements of a Breach of Contract Claim
To successfully establish a breach of contract claim, one must learn the different elements of the breach. Additionally, you should enlist the assistance of a trusted lawyer or an attorney to help you investigate and prove the following elements:
Element 1: The Validity of a Contract
Strongly put, a contract is the backbone of any agreement. It can be written, spoken, or even implied, but it must meet certain criteria to be valid or legally binding.
Element 2: Performance of Contract Terms
This element is all about the parties doing what they promised. You, the plaintiff, already performed according to the contractual terms or have a valid excuse for nonperformance.
Element 3: Breach of Contract Terms
Evidence or indication that the defendant fails to perform their agreement.
Element 4: Damages Due to the Breach
You must be able to demonstrate that you sustained actual damages from the defendant’s breach of contract.
Proving a Breach of Contract
In order to prove and make a breach of contract claim, you are required to show the court that all the above elements were present.
Legal Remedies for Breach of Contract
If a breach occurs, the law offers remedies like damages, specific performance, or contract cancellation. In Thailand, the law describes remedies to the affected parties relatively broadly.
To start with, there are stipulated damages, which the parties agreed to in the contract in question. The non-breaching party generally must only prove the breach and not that the actual damages equal the stipulated amount. However, the other party could request that the court reduce the amount.
Second, there are general or actual damages to which the injured party must prove they are entitled. Finally, there are consequential or punitive damages, which the complainant can demand if they can prove that the other party foresaw and could have prevented the breach. It is worth noting that Thai civil courts award damages to make the injured party whole and eschew additional punitive damages, except in special circumstances.
There is much to consider when negotiating and drafting a contract, especially regarding breaches, as well as breach of contract components when attempting to make a claim. Thailand Arbitration Center (THAC) can be of assistance in handling breaches of contract. THAC services range from offering model dispute resolution clauses that address breaches of contract to providing a forum for arbitrating or mediating remedies for a breach.
THAC: International Arbitration and Expert Mediation Services
As an international arbitration institution, THAC specializes in providing effective and impartial dispute resolution services. Our team of seasoned arbitrators and mediators brings a wealth of experience to the table, ensuring that your business disputes are handled with the utmost expertise and professionalism.
If you have questions about our arbitration services or any other legal services, please get in touch with us at:
Email: [email protected]
Call: +66 (0)2018 1615
THAC is looking forward to helping you.
