Legal Definitions - passive breach of contract

Passive breach of contract is a failure to perform the requirements of a contract. This means that one party did not do what they promised to do in the contract. It is a violation of a contractual obligation by failing to perform one's own promise, by repudiating it, or by interfering with another party's performance.

For example, if a company hires a contractor to build a house and the contractor fails to complete the work on time or does not complete the work according to the agreed-upon specifications, this is a passive breach of contract. The company can sue the contractor for damages.

Passive breach of contract is different from active breach of contract, which is when a party negligently performs a contractual obligation to the point of acting outside the contract's terms. An example of active breach of contract is when a contractor uses substandard materials to build a house, causing damage to the property. This can give rise to a claim in contract and in tort.

It is important to note that every breach of contract gives rise to a claim for damages, and may give rise to other remedies. Even if the injured party sustains no pecuniary loss or is unable to show such loss with sufficient certainty, they have at least a claim for nominal damages.