4 Types of Breach of Contract You Need

to Be Aware Of in contract
administration
There are several types of breach of contract that can occur in contract
administration, some of the most common ones include:

1. Material Breach: A material breach of contract occurs when one party fails to fulfill a
significant and essential obligation under the contract. This type of breach can result in
the other party being excused from their own obligations under the contract.
2. Minor Breach: A minor breach of contract, also known as a partial breach or
immaterial breach, is a failure to fulfill a minor obligation under the contract. The non-
breaching party may still be required to fulfill their obligations under the contract
despite the minor breach.
3. Anticipatory Breach: An anticipatory breach of contract occurs when one party
declares their intention not to fulfill their obligations under the contract before the due
date. This allows the other party to treat the contract as if it has been breached and
take appropriate action, such as terminating the contract or seeking damages.
4. Fundamental Breach: A fundamental breach of contract occurs when one party fails to
fulfill a crucial obligation under the contract, such as a failure to deliver goods or
provide services. This type of breach is considered so severe that it gives the non-
breaching party the right to terminate the contract and seek damages.

It is important to have a clear understanding of these types of breaches in order to

effectively manage contracts and minimize the risk of disputes and losses.