Legal Definitions - constructive breach

Constructive breach is a type of breach of contract where one party violates their contractual obligation by failing to perform their promise, repudiating it, or interfering with the other party's performance. This can occur in several ways:

• Anticipatory breach: When a party unequivocally indicates that they will not perform when performance is due, giving the other party the option to treat the contract as terminated and sue for damages immediately.
• Active breach: Negligent performance of a contractual obligation, to the point of acting outside the contract's terms.

For example, if a contractor agrees to build a house for a homeowner by a certain date but fails to do so, it would be considered a breach of contract. If the contractor tells the homeowner that they will not be able to complete the project on time, it would be an anticipatory breach. If the contractor builds the house with subpar materials, it would be an active breach.

Regardless of the type of breach, the injured party has the right to sue for damages. Even if they do not sustain any pecuniary loss or cannot show such loss with sufficient certainty, they have a claim for nominal damages.