A contract is a legally binding agreement between two parties that details the duties and responsibilities of each party. Contracts may be oral or in writing, although most contracts must be in writing in order to be legally enforceable. Oral contracts are more challenging to enforce and should be avoided whenever possible.
In order for a contract to be enforceable, there are specific requirements that must be met, such as each party exchanging something of value. Additionally, all parties involved in the contract must have a solid understanding of every term included in the contract.
They must be in mutual agreement on those terms. A contract dispute occurs when any party involved in the contract is in disagreement regarding any of the terms or definitions contained within the contract.
Material Breach: A material breach occurs when the contract is completely and irreparably broken. The breach is so deep that the rest of the contract is rendered completely useless and no other terms may be fulfilled. A material breach is sometimes referred to as a total breach. The non breaching party does not need to fulfill their contractual obligations, and they may sue the breaching party for any damages caused by the breach.
Minor Breach: A minor breach of contract is sometimes referred to as a partial breach, and occurs when the breach does not affect the whole purpose of the contract. Both parties are still required to carry out their contractual obligations. However, the non breaching party may still be entitled to sue the breaching party for damages.