Contracts are promises encoded into law. Most cases consist of written contracts but it is not unheard of to have a verbal contract.
Did a real contract actually exist? If it existed, what did the contract really require of the parties? Was the contract modified at any time after it was agreed to or signed? Was the contract actually breached? Does the party who is presumed to have breached the contract have any legal defense against the enforcement of the contract? What damages were caused because the contract was not fulfilled?
The materiality of the breach.
After the actual breach of contract is established, the judge must decide if the breach actually caused any damage and how much damage. The law is very careful in the judgment of a breach of contract. There are significant considerations for both sides. The important questions include:
Was the breach actually material to the contract? How much value was actually received by the plaintiff (the party whose contract was breached)? Can the plaintiff actually be adequately compensated for any damages the breach caused? How much did the defendant actually perform on the contract? Did the contract result in any unforeseen hardship? Did the defendant do anything willfully negligent or willful? What is the likelihood that the defendant can and will perform the remainder of the contract?
The degree to which the breach of the contract was material is important because it goes to the question of penalty. If the defendant breached the contract but the complainant still received the item or service specified in the contract, the breach is minor. If the contract does not specify a time or date of completion and specify that the deadlines are from, a reasonable delay on the part of the contractor can only be considered a minor breach. If the breach is minor, but value under the contract is received, the complainant must still fulfill his or her part of the contract (in many cases, pay for the goods or services delivered under the contract). However, the complainant may receive damages caused by the breach. Penalties for breach of contract.
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