A breach of contract is material non-compliance with the terms of a legally binding contract.
Breaches of contract give rise to:
- a right to monetary compensation, that is damages, and
- if it’s serious enough, the right to terminate the contract.
It’s a necessary part of any legally binding contract that each party expects to obtain the benefit of the contract entered into.
But then it’s breached. What happens then? How do legal rights to damages and termination play out?