Legal Definitions - action ex contractu

An action ex contractu refers to a legal claim or lawsuit that arises directly from a contract. This means one party alleges that another party failed to uphold their obligations or violated the specific terms of a legally binding agreement. The dispute originates specifically from the promises and duties established within the contract itself, rather than from a non-contractual wrong.

• Example 1: Business Service Agreement
  A small marketing agency signs a contract with a new client to design and launch a comprehensive digital advertising campaign over six months for a set fee. The contract specifies the deliverables, timelines, and payment schedule. After three months, the client abruptly cancels the contract and refuses to pay for the work already completed, despite the contract outlining a cancellation clause that requires payment for services rendered up to the point of termination.

  This situation would lead to an action ex contractu if the marketing agency decides to sue the client. The lawsuit would be based entirely on the client's breach of the payment and cancellation terms stipulated in their signed service agreement.

• Example 2: Real Estate Purchase Agreement
  A buyer and seller enter into a written agreement for the purchase of a house. The contract includes a contingency that the sale is dependent on the buyer securing a mortgage within 30 days. The buyer successfully obtains a mortgage commitment within the timeframe and notifies the seller. However, the seller then receives a higher offer and refuses to proceed with the original buyer, despite the first contract being fully satisfied by the buyer.

  The original buyer could initiate an action ex contractu against the seller. The legal claim would focus on the seller's breach of the terms of the signed real estate purchase agreement, which became binding once the buyer fulfilled their contractual obligations.

• Example 3: Construction Contract
  A homeowner hires a contractor to build an extension on their house. The detailed contract specifies the materials to be used, the dimensions of the extension, and a completion date. During construction, the contractor deviates significantly from the agreed-upon blueprints, using cheaper, substandard materials and failing to complete the project by the deadline, resulting in structural issues and delays.

  The homeowner could file an action ex contractu against the contractor. The basis of the lawsuit would be the contractor's failure to adhere to the agreed-upon terms regarding materials, specifications, and timeline as outlined in their construction contract.