Non-fulfillment of the contract obligations

Failure to perform a contract means a violation of its conditions and terms, and therefore entails negative legal consequences for the counterparty (party to the contract) who committed such a violation.

Responsibility for breach of contract will be consistent with the legal nature of the breach. In other words, to bring a party to responsibility, it is necessary to determine what exactly is the violation of the obligation, the severity of the violation.

Non-fulfillment and improper fulfillment

Thus, if one of the parties to the contract fails to fulfill its obligations to the other party (for example, the buyer evades payment for the purchased goods), then such a contract is considered not fulfilled on its part. At the same time, if a party to the contract fulfills its obligations, but does not comply with a number of conditions stipulated in the agreement or prescribed by law, such fulfillment is considered improper. Examples of improper fulfillment are as follows: violation of the terms stipulated in the contract, incorrect method of fulfillment of an obligation, fulfillment of an obligation to an improper person, violation of the conditions of the contract in terms of the range and quality of goods, if it is a purchase and sale agreement, etc.

Force Majeure

One of the grounds for exemption from liability for breach of contract in course of business activities may be force majeure, i.e. extraordinary and unavoidable circumstances that prevent the performance of the contract, which the parties could not foresee and which are beyond the scope of their control. The party referring to force majeure must prove it. It is important to note that a common mistake is to incorrectly determine whether there are the force majeure circumstances, because this is a matter of special competence.

Responsibility

A non-breaching party may hold the party at fault liable for breach of contract. Depending on the circumstances, you can claim damages in the form of actual expenses and lost profits, payment of penalty, as well as collecting interest for the use of your funds. In practice, such liability measures can often be implemented in the form of pre-trial claim settlement of dispute. In the claim, it is important to state the essence of the requirements correctly, accurately and convincingly, as well as attach the calculation and copies of supporting documents. If the claim is ignored, you should apply to the court with a statement of claim. Sending a claim is in many cases a prerequisite for applying to the court.

Contract termination

The procedure for terminating a contract due to its violation depends on the type of contract to be terminated. For example, if a paid service agreement can be terminated by a party at any time, then the grounds established by law or provided for in the agreement are necessary for termination of lease, work, loan agreements and some other agreements.