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Under the law, once a contract is breached, the guilty party must remedy the breach. The primary solutions are damages, specific performance, or contract cancellation and restitution.
There are four elements of a breach of contract claim: a valid contract, performance, breach, and damages.
Further, a breach of contract generally falls under one of two categories: Actual breach: When one party refuses to fully perform the terms of the contract. Anticipatory breach: When a party states in advance that they will not be delivering on the terms of the contract.
Hear this out loud PauseThe existence of a contract; Performance by the plaintiff or some justification for nonperformance; Failure to perform the contract by the defendant; and, Resulting damages to the plaintiff.
If you're found guilty of breaching a contract, the court will order you to pay damages to the other party. The amount of damages will depend on the severity of the breach and how much the other party has lost because of it. In some cases, you may also have to pay the other party's legal fees.