11:44
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Simple English definitions for legal terms
passive breach of contract
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A quick definition of passive breach of contract:
Passive breach of contract is when someone fails to do what they promised to do in a contract. This can happen if they don't perform their part of the agreement, say they won't do it, or interfere with someone else's performance. Even if the other person doesn't lose any money, they can still ask for a small amount of money called nominal damages. This is different from active breach of contract, which is when someone does something wrong while trying to do what they promised. Anticipatory breach is when someone says they won't do what they promised before it's time to do it. Material breach is when someone breaks the contract in a big way, and the other person can stop doing their part and ask for money.A more thorough explanation:
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.