What is a Breach of Contract?
A breach of contract is when a binding, legal contract was made and then broken. A contract can be made for just about anything, and will typically involve two parties. Contracts are very common, and you interact with them everyday. For example, user agreements are a constant part of our lives and we typically click “I Agree” without thinking twice.
However, user agreements are contracts made between the publisher of the software and the user. Typically, the publisher will require that the user use the software legally and the user must agree that the publisher has a right to their information.
Violating the agreement by modifying the software and using it for illegal purposes will mean the publisher has a right to stop you from using your software and/or suing for damages.
What Happens if a Contract is Broken?
Most contracts include a provision on what to do if a contract is broken. Both parties must agree to follow the contract, which includes what to do if it is breached. It will often include mandatory arbitration, who will pay the legal fees, etc.
If the contract doesn’t include any information about what to do in the event of a breach, then the next step is to typically notify the other person that there is a breach. If you committed the breach, then you owe the other person, in good faith, to let them know. If the other person committed the breach then you need to let them know that you are aware of it.
From there, the parties can decide if they want to try to complete the contract as agreed or they want to return to the original position before they made the agreement. If they cannot agree on what to do, then the next course of action is to hire a business lawyer to represent you.