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Partial breach of contract: What is it?

| Dec 16, 2020 | Blog |

If you’re a new business owner in Minnesota, then you’ve likely come across the need to construct a contract. This could be with your employees, vendors or a private contractor. Understandably, you want the person or company to keep to their word and complete their contract. However, there are times when these contracts are breached. This means that one party refused to do the work or failed to meet the contract’s agreements. What happens when a person or organization only partially breached their contract?

Partial breach of contract

A breach of contract occurs when one party refuses or neglects to do the job they were contractually obligated to perform. However, there are cases in which an entire collapse of the contract isn’t warranted. Partial breaches of contracts are often minimal and won’t really affect the outcome of the job being performed. These are also known as immaterial breaches. This occurs when something in the contract is not met and thus deemed negligible. In this case, the missing part of the contract is so insignificant that it doesn’t matter over the long or short term. In many cases, contract disputes may not even be seen after a partial breach.

Compensation

In some cases, the party that partially breached the contract may be asked to compensate for the losses or lack of service. For example, if you ordered 1,000 dishes from your catering service and it only provided 800, you may be compensated for this partial breach of contract.

Although a partial breach of contract isn’t always seen as a big deal, it is still important to have a legal team next to you in the event that things take a turn for the worse. A business law attorney may help you evaluate your options.