Contract Disputes

A contract dispute occurs when any party in a contract has a disagreement regarding any of the contract terms or definitions. In order for a contract to be valid, there must be a "meeting of the minds." This means that all parties need to have a solid understanding of every contract term, and must be in mutual agreement as to the terms. Without a mutual agreement, the contract is not legally valid and may be contested in court.

In contract law, a contract dispute is usually considered a breach of contract, meaning that a party failed to perform a duty or promise that they agreed to in the contract. There are two different types of contract breaches: Material Breach and Minor Breach.

Material Breach: A material breach in a contract occurs when a party fails to perform a contractual duty and the breach is so crucial and deep that it makes the agreement or purpose of the contract irreparable. Usually this occurs when the heart of the contract is not satisfied because of the breach. When a material breach occurs, the non-breaching party does not have to perform their end of the contract and can sue the breaching party in return for any damages caused by the breach.

Minor Breach: A minor breach occurs when there is a breach of contract by a party, but the breach is very minor and does not disrupt the heart of the contract. When minor breach occurs, both parties must still carry out the remainder of the contract, but the non-breaching party may sue for damages.