Breach of Contract in General

A contract is binding on the parties that made it. The parties must act in accordance with the contract and fulfil their contractual obligations. The performance must be carried out at the agreed time and place. The object of the contract must meet the agreed requirements.

A breach of contract occurs when the performance of the contract is not carried out as agreed for some reason. The nature and extent of the breach of contract is established by comparing the performance under the contract with the performance made, if any. A breach of contract occurs if the performance made deviates to the disadvantage of the recipient from what was agreed in the performance contract or if no performance was made at all.

The basic types of breach of contract are delay and fault. For example, in a sale of goods, the seller's main obligation is to deliver the goods to the buyer as agreed. If the goods delivered do not correspond to what was agreed, there is a defect. If the goods are not delivered at the right time and place, the seller is in default. The buyer's main obligation is to pay the seller the purchase price as agreed.