Essential Elements of Breach of Contract

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What Is a Breach of Contract? A contract is a legally enforceable promise. The promise is usually for the purchase of an item or for a service or job rendered. If a party breaks a promise, the other party may be able to sue for breach of contract. To win a breach of contract action, the plaintiff will have to prove three elements: 1. Existence of a Valid Contract For there to be any breach at all, there must first be a valid contract. The contract does not need to be in writing. Oral contracts are enforceable if a party can prove their existence. To prove the existence of an enforceable contract, a party must establish three elements: Offer – this can simply be an intention to enter a contract. However, not all discussions of future deals will be offers. For example, an advertisement will probably not be considered an offer. Acceptance – this means the parties have genuinely agreed to all of the contract's essential terms. This is an area of the law where written contracts are preferable to oral contracts. Written contracts tend to be a more clear expression of the essential terms each party has accepted. Consideration – this means each party must have given and received something of value. Put generally, a unilateral promise is probably not an enforceable contract; neither is a contract based on services rendered in the past. 2. Breach of the Contract's Terms Generally, a breach occurs when a contractual promise is broken. However, not every term of the contract must be taken literally. Only a breach of contract that detracts value from non-breaching party can warrant a lawsuit. Such instances are considered material breaches. Breaches of contract that do not take away value from agreement are considered minor breaches and are highly unlikely to succeed as a lawsuit. There are also other types of breaches. A fundamental breach is a breach that breaks
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