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How to write a breach of contract letter: A step-by-step guide Insert the names of the parties involved in the breach of contract. ... Enter the date of effect for your contract. ... In simple and clear terms, explain how the other party has breached the agreement.
What Is Considered a Breach of Contract? A breach of contract occurs when one party fails to fulfill its obligations as outlined in the contract. That could include something relatively minor, such as being a couple of days late on a payment, or something more serious.
When a breach is minor, the nonbreaching party is still required to perform under the contract, but may recover damages resulting from the breach. For example, when a seller's delay in delivering goods is a minor breach of contract, the buyer must still pay for the goods but may recover any damages caused by the delay.
An award of compensatory damages is the most common of the legal remedies for breach of contract. The calculation of compensatory damages is based on the actual losses you have sustained as a result of the breach of contract. They typically fall into two categories: expectation damages and consequential damages.
The 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.