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A breach of contract refers to when any party privy to an agreement or contract whether oral or written fails to perform according to the terms of the contract. There are many ways to be in breach of contract but many times it refers, to failure to supply goods, failure to pay contractors, providing inferior services and products. There is a standard that is agreed upon and it must be maintained. In simple terms a breach of contract is a broken promise to do something. In legal terms it is ‘an unjustifiable failure to perform terms of a contract’. In a different definition it is explained as ‘the violation of contract through failure to perform, or through interference with the performance of the contractual obligations’.

Breach of contract forms many cases that take place in court. Many people tend to file lawsuits against those in breach of contract either to recover their lost assets or get out of the agreement. Sometimes there is a partial breach of contract whereby one party is not completely at fault but, has failed to provide or perform in some way. This may allow the aggrieved to sue for ‘actual damages’, but not in full breach of contract.

A material breach of contract takes place when one party acts in such a way that devalues the contract. Rendering it null and void, or destroyed. It also exposes that party to liability for breach of contract in damages. In this way, you may give the aggrieved a chance to sue and alleviate their losses for the damage caused. When there is such a total breakdown of material provisions in the contract, it can be referred to as a fundamental or repudiatory breach.

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Anticipatory breach of contract occurs when one party stops performing in accordance to their contract, leading the other party to believe the contract will not continue as per their agreement. It is also called anticipatory repudiation. The breaching party can give indication through their behavior or by failing to act. For example, when refusing to accept payment, or refusing to pay. By failing to produce or procure the said services or products, and showing their lack of interest to abide by the contract rules.

An example for anticipatory breach of contract is Jane the client wants to buy a car. She identifies Smith’s Bazaar has the model she wants to buy. She explicitly tells the car salesman, Dave that she will purchase the red Nissan sedan and she will do so by the 5th of August. Come July 30th, she calls Dave and says she will not purchase the car, after all, she got a better deal elsewhere. At this point, Dave is free to sell the car or potentially file a lawsuit against Jane for breach of contract.

In some cases, the aggrieved party may not ask for monetary damages in value but instead, cite specific performance. This could be any court ordered specific performance or action to be taken in breach of contract to fulfill the conditions stipulated. This kind of order takes place when it is hard to put in value the damages for example land or a rare item of personal property. The case for breach of contract continues to file in huge numbers.

One such case for breach of contracts is by “Revelations Perfume and Cosmetics Inc. v. Prince Rogers Nelson In 2008, the Revelations Perfume and Cosmetics company sued the famous musician “Prince” and his music label, seeking $100,000 in damages for reneging on an agreement to help market their perfumes. The flamboyant pop star had promised to personally promote the company’s new perfume named after his 2006 album “3121,” and to allow his name and likeness to be used in the perfume’s packaging. Prince then refused to grant interviews related to the project and refused to provide a current photograph for a press release. In its breach of contract complaint, Revelations asked the court to award more than $3 million in lost profits, as well as punitive damages. The judge found no evidence, however, that the pop star acted with malicious intent, and ordered him to pay nearly $4 million for the cosmetics company’s out-of-pocket expenses. Revelations’ request for punitive and loss-of-profits damages was denied.”