Breach

Question 1

What does it mean to breach a contract?

Answer 1

1. Breaching party has to pay damages caused by the breach and
2. Non-breaching party may have a right to suspend performing.

Question 2

what are the primary concepts of breach & performance?

Answer 2

1. Breach-
   *The term for a party’s actions that do not meet their agreed-upon obligations in a contract.
   *It is either a material breach or substantial breach
   *Non-breaching party duty to perform only suspend in material breach
2. Repudiation-
   * The term for a party’s communication to the other party that it will not meet their agreed-upon obligations in a contract
   *Repudiation or anticipatory repudiation suspends the duty to perform
3. Cure-
   *nAny party in breach is entitled to cure their performance or provide reasonable assurances they will perform
   * A party in material breach may reinstate the opposing party’s duty to perform if cure is adequate

Question 3

What are the two kinds of breach?

Answer 3

1. Substantial performance
   *** Breach of contract terms, but a minor failure given the circumstances of both the agreement and the contemplated performance
   ** Does not suspend the non-breaching party’s duty to perform
2. Material Breach
   ** Breach of the terms
   **Performance is non-compliant and fails to provide the benefit of the bargain
   *** Suspends non-breaching party’s duty to perform

Question 4

What are two other kinds of breach?

Answer 4

Partial Breach-
Terminology for breach that relates to a claim for compensation for ONLY PART of the rights the non-breaching party was entitled to demand from the breaching party.

Total Breach-Terminology breach that relates to a claim for compensation for ALL of the rights the non-breaching party was entitled to demand from the breaching party.

Question 5

Allegations of Breach in order

Answer 5

Decide if the party
1. Substantial performance with a minor failure
OR
2. Material breach with a non-compliant or failure to provide the benefit to the bargain
THEN NEXT STEP
3. Provide an opportunity for cure
THROUGH
Partial Breach - claim for part of the rights the non-breaching party was supposed to be compensated
OR
Total Breach - claim for all of the compensation the non-breaching party was supposed to be compensated

Question 6

How do you determine if a material breach has occurred?

Answer 6

BRAGS—
B-Benefit
extent to the non breaching party will be deprived of the benefit which he reasonably expected. (Expectation/reliance interest)

R- Reasonable assurance / cure
What is the likelihood that the party failing to perform will cure failure, taking into account reasonable assurances (Channeling)

A-Adequate Compensation
Etent to which the party can be adequately compensated for the deprivation (Preventing unjust enrichment)

G-Good faith
Extent to which behavior of the party failing to conform with standards of good faith (private ordering)