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Legal Definitions - constructive breach

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Definition of 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.

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Simple Definition

Constructive breach is when someone violates a promise they made in a contract. This can happen if they refuse to do what they promised or interfere with someone else's ability to do what they promised. Even if the person who was hurt by the breach doesn't lose any money, they can still ask for a small amount of money called "nominal damages." If someone breaks a promise before they were supposed to do it, this is called "anticipatory breach." If someone keeps breaking a promise over and over again, this is called "continuing breach." If someone breaks a promise on purpose because it would cost them less money than doing what they promised, this is called "efficient breach." If someone breaks a promise so badly that the other person can't get what they were supposed to get from the contract, this is called "material breach." If someone breaks a promise but it's not that bad, the other person can still ask for some money, but they still have to do what they promised. This is called "partial breach."
constructive bailment | constructive breaking into a house Read a random term: posted water

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