Most of us use contracts every day in both life and business. A valid contract legally binds the parties to fulfill specific duties.
Failure to perform those obligations results in a breach of contract. For example, if a restaurant orders and pays for 100 eggs and a seller delivers them in the agreed-upon time frame, the contract is fulfilled.
However, if the buyer fails to pay or the seller delivers only 50 eggs—or worse, 100 eggs but 20 are broken—one party may have breached the contract. This is a trivial example, but you get the idea.
There are several types of contract breach. In this blog post, our Ohio contract lawyers will walk you through the types of breach of contract you may encounter and how a knowledgeable business law attorney can help you navigate if one party to your contract fails to deliver.
Please call (419) 455-1410 or send us an online message today to learn how we can help you.
Key Takeaways
Before You Claim a Broken Contract in Ohio, Know This
Every breach of contract in Ohio falls into a handful of common types, but knowing the type isn’t the whole picture. Here’s what else matters before you decide on next steps.
- Not every failure to perform is treated the same way. Ohio law distinguishes between a material breach, which strikes at the heart of the agreement, and a minor breach, where one side falls short on some but not all of what they promised.
- Anticipatory breach lets you act before the deadline even arrives. If the other party tells you upfront they won’t perform, Ohio law doesn’t require you to wait for the actual due date before pursuing damages or another remedy.
- Remedies vary depending on what kind of breach occurred. Some cases call for a straightforward suit for damages, while others, particularly anticipatory breach situations, may allow for equitable relief like specific performance.
- You don’t have unlimited time to bring a claim. Ohio law generally gives you four to six years to file a breach of contract claim, so confirming your specific deadline early protects your ability to recover at all.
Breach of Contract Examples
Contracts are legally binding agreements that require the parties to perform the specific duties listed in the document.
When one party fails to meet any of its obligations under the agreement, a breach of the contract occurs.
Reasons for breaches of contract can include:
- Failure to complete contractual obligations on time;
- Inability to comply with certain, specific terms of the contract; and
- Complete failure to perform.
Someone Didn’t Hold Up Their End Of The Deal? You’re Not Overreacting.
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Schedule A Free ConsultationFour common types of breaches of contract could affect you and your business. A skilled breach of contract lawyer can help you navigate some of these complex areas of contract law.
Here, we will discuss the four common types of breach of contract. Remember, in Ohio, you will need to bring your claim within four to six years of a breach of contract, so speak with Bensinger Law today.
Material Breach of Contract
In the event of a material breach of contract, a party has failed to perform the essential terms of the contract.
This could be the non-performance of a service or failure to deliver a product after receiving payment. Put another way, a material breach goes to the very core of what the contract was about.
A material breach almost always discharges the non-breaching party from its obligations under the contract.
A material breach of contract also typically provides grounds for the non-breaching party to sue the breaching party for damages.
Minor Breach of Contract
In contrast, a minor breach of contract is when one party partially performs under the contract but does not do everything they are supposed to do. In other words, there is some kind of failure to perform, but they do not violate the entire contract.
An example of this would be when a restaurant contracts with a vendor to provide 20 pounds of butter for their weekly baking needs.
Instead of providing the brand specified in the contract, Brand A, the vendor provides an equivalent brand, Brand B.
The restaurant still received 20 lbs of high-quality butter but received a different brand. The contract was technically both breached and fulfilled.
However, the restaurant might not have grounds to sue for damages unless Brand B was substantially different and their baked goods—and thus bakery profits—suffered as a result.
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Anticipatory Breach of Contract
An anticipatory breach of contract occurs when, before performance is due, one party tells the other party they will not perform their obligations.
Consider the example of a restaurant that orders a new set of tablecloths. Months before the order is due, the tablecloth maker calls the restaurant and says, “Sorry, we will be unable to deliver your order.” This would be considered an anticipatory breach.
In cases of anticipatory breach, a non-breaching party generally has two options. They can wait until performance is due to see if the other party will change its mind and be able to deliver.
They can also immediately pursue sue damages, including equitable damages (if available), which could include forcing the other party to perform.
Actual Breach of Contract
The term “actual breach” of contract refers to a wholesale failure to meet the obligations stated in a contract at the time of performance.
When referring to an actual breach of contract, it means the failure has occurred—it is not anticipated.
Actual and anticipatory breaches of contract are temporal terms to help parties understand when a breach occurred, while material and minor breaches of contract are terms to help parties understand the severity of a breach.
Not Sure If Your Situation Is “Serious Enough” For A Lawsuit? Let’s Find Out Together.
Many people wait to get legal advice because they’re not sure their situation rises to a real breach of contract. That’s a reasonable question, and it’s one we can help answer honestly, without pressuring you into anything.
Schedule A Free ConsultationHow Bensinger Legal Services Can Help
Aaron Bensinger helps clients with breach of contract, personal injury, and civil litigation claims. He strives to offer unmatched representation in the Northwest Ohio region with his client-centered approach.
His extensive experience and familiarity with contract law enable him to meet his clients’ most pressing legal needs.
Contact us using our online form, or call (419) 455-1410 today for a case evaluation to see how we can help your case.
Breach of Contract Questions We Hear Often
Ohio recognizes several types, including material breach, minor breach, anticipatory breach, and actual breach. The type of breach affects what remedy is available, ranging from a straightforward damages claim to equitable relief like specific performance.
A material breach strikes at the core of the contract, essentially defeating its purpose, while a minor breach means one party fell short on part of their obligations but still delivered most of what was promised. The distinction affects what damages or remedies are available.
Yes, if it qualifies as an anticipatory breach. When one party tells you before the performance date that they do not intend to honor the contract, Ohio law generally allows you to pursue damages or another remedy without waiting for the actual deadline to pass.
Ohio law generally gives you four to six years to bring a breach of contract claim, though the exact deadline can depend on the specifics of your agreement. Because missing that window can bar you from recovering anything, it is worth confirming your deadline early rather than assuming you have time.
Aaron L. Bensinger is an Ohio attorney serving personal injury and civil litigation clients. He has extensive trial experience and makes client service is his primary focus. As a partner at Balyeat, Leahy, Daley, Miller & Bensinger, LLC, Aaron happily works in Lima, OH, and serves the entire Northwest region of the state and beyond.