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Common types of breach of contract in business construction

Business contracts are meant to make all expectations clear and binding to prevent unfulfilled obligations and disputes. However, sometimes parties do not uphold their ends of the contract. This is unfortunately common in the construction industry.

Contractors are notorious for contract breaches. Sometimes the reason is not completing work on time or within budget, and other times the contractor simply abandons the project and takes your money. Regardless of the reason, these are some of the types of breaches your business may experience when dealing with contractors.

  • Anticipatory: An anticipatory breach, also known as repudiation, entails the contractor clearly revealing in advance through words or actions the inability or unwillingness to meet contractual responsibilities. Litigating this kind can be tricky because when you choose to take legal action can affect how much damages you are eligible to receive.
  • Minor: This type is a partial breach in which the contractor only fails to deliver in part. You can sue only for the portion of the contract the contractor does not complete, and you still have a legal duty to uphold your end of the contract.
  • Material: These are severe breaches that have significant consequences for you. The difference between a minor and material breach depends on six factors that the court will consider. Under material breaches, you not only can sue, but you also do not have to complete your part of the contract.
  • Total: As the name implies, this happens when the contractor does not fulfill any of the contract. Sometimes material breaches are called total breaches.

If your contractor has failed to adhere to the contract you two made, then you have a breach and the right to seek damages. Figuring out which type of breach can be difficult to do, so it is best to speak to a Florida attorney with experience in business litigation and construction contracts. A lawyer can help you take appropriate action to recover your financial losses.

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