Breach Of Contract
Definition of 'Breach Of Contract'Violation of any of the agreed-upon terms and conditions of a binding contract. This breach could be anything from a late payment to a more serious violation, such as failure to deliver a promised asset. A contract is binding and will hold weight if taken to court; however, proof of the violation is imperative. |
|
Investopedia explains 'Breach Of Contract'Sometimes the process for dealing with a breach of contract is written in the original contract. For example, the contract may state that in the event of a late payment, a fee of $25 must be paid along with the missed payment. If the consequences for the specific violation are not included in the contract, the two parties can settle the situation themselves, which often leads to a new contract, or legal action can be taken. |
Related Definitions
Articles Of Interest
-
A Guide To Risk Warnings And Disclaimers
Learn what the phrase "Past performance may not reflect future performance" really means. -
Understanding Your Insurance Contract
Learn how to read one of the most important documents you own. -
Trading Gold And Silver Futures Contracts
If you are a hedger or a speculator, gold and silver futures contracts offer a world of profit-making opportunities. -
Exploring Advanced Insurance Contract Fundamentals
Understanding your contract can help you protect our family's financial security. -
Protect Your Company From Employee Lawsuits
Understanding employment practices liability insurance is easy, once you know the basics. -
Easy Ways To Cut Rental Costs
If rent payments are crippling your finances, then read on to learn how to save your money. -
What is an alienation clause?
Whether used in reference to insurance policies, mortgages or commercial loans, an alienation clause stipulates that should a purchaser or borrower sell his or her interest to another party, ...
Free Annual Reports