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During the course of operating a business, owners may have to work with others to complete projects. Contracts better ensure all parties are on the same page regarding the terms of the work. Unfortunately, contract terms are not always met.

AllBusiness.com notes that sometimes, it becomes necessary to sue for contract violation. Business owners will do well to understand when a contract breach has transpired, and when to take legal action.

Defining a breach of contract

When a party does not carry out a specific task in an agreed-upon manner, flat-out refuses to perform a task or makes it so that another party cannot complete work, it is a breach of contract. Chron notes what goes into a solid commercial contract. Despite including all essential elements, there is no 100% airtight protection against a breach.

Deciding when to sue

To have grounds for taking legal action against a breached contract, there must be a written agreement of a specific type:

  • Property leases in excess of a year
  • Real estate transaction
  • A promise to pay another’s debt
  • An agreement that takes more than a year to fulfill

The statute of limitations also applies to contract breaches, giving parties a time limit for when they can take legal action. The specific deadline involves a number of elements:

  • The state
  • Case elements