First Principles of Business Law

4. Establishing a breach of contract

4.1. Different ways in which a breach of contract can occur

Specific performance of the agreed terms discharges the obligations and brings the contract to an end. But a failure by a party to discharge their contractual obligations by performance constitutes a breach of contract by the defaulting party. It is important to know where the law draws the line between performance which discharges the contract, and performance which falls short of what is required and gives rise to a breach of contract.

A breach of contract can occur in different ways. There may be a complete failure to perform; a partial failure to perform; performance that is defective in some way; or performance that is late. A breach of contract may also take place in the form of an anticipatory breach, or repudiation, of the contract.

The examples in this section will explain how to distinguish between the different types of breach of contract you may encounter.