---
title: Breach of Contract: Meaning, Types and How to Prevent It
url: https://aavenir.com/glossary/breach-of-contract/
description: A breach of contract happens when a party fails to perform an obligation in a contract, performs it late or badly, or makes clear it will not perform, without.
updated: 2026-11-07
---

[Home](https://aavenir.com/) / [Resources](https://aavenir.com/resources/) / [Glossary](https://aavenir.com/glossary/) / Breach of contract Glossary

# What is breach of contract?

A breach of contract happens when a party fails to perform an obligation in a contract, performs it late or badly, or makes clear it will not perform, without a lawful excuse.

## Types of breach

- **Material breach.**A failure serious enough to defeat the purpose of the contract, which may allow the other party to terminate.

- **Minor breach.**A partial or late performance that still delivers most of the value.

- **Anticipatory breach.**A party says or shows in advance that it will not perform.

- **Actual breach.**A party fails to perform when performance is due.

## Common remedies

Remedies depend on the contract and the governing law. They can include damages, service credits, specific performance, or termination. Many contracts set out a cure period that lets the party in breach fix the problem first.

## How to prevent it

Most breaches start as a missed obligation nobody was tracking. Give every obligation an owner and a due date, collect evidence when it is met and escalate early. [Obligationflow](https://aavenir.com/solutions/contract-obligation-management-software/) does this for both sides of the contract. This is general information, not legal advice.

## Keep reading

[Contract obligations Contract obligations are the duties each party agrees to perform under a contract, such as paying on time,. Read more](https://aavenir.com/glossary/contract-obligations/)[Contract termination Contract termination is ending a contract before or at the end of its term, under a right in the contract or. Read more](https://aavenir.com/glossary/contract-termination-lifecycle-management/)[Contract lifecycle management Contract lifecycle management is the process of managing a contract from the first request through drafting,. Read more](https://aavenir.com/glossary/contract-lifecycle-management/)

Frequently asked questions (FAQ)

## Common questions

###

### What counts as a breach of contract?

Failing to perform an obligation, performing it late or badly, or making clear in advance that you will not perform, without a lawful excuse. Whether a breach is material depends on how much of the value it defeats. [Read about contract obligations](https://aavenir.com/glossary/contract-obligations/).

###

### What is a material breach?

A breach serious enough to defeat the main purpose of the contract. It often gives the other party a right to terminate, sometimes after a cure period set out in the contract. This is general information, not legal advice. [Read about contract termination](https://aavenir.com/glossary/contract-termination-lifecycle-management/).

###

### How can companies avoid breaching contracts?

Most breaches start as an obligation nobody was tracking. Give every obligation an owner and a due date, collect evidence when it is met and escalate before deadlines pass, for both your side and the counterparty. [See Obligationflow](https://aavenir.com/solutions/contract-obligation-management-software/).

Have a question we have not answered? [Ask the Expert](https://aavenir.com/contact/)

Schedule a demo

## See your contracts run on one record.

- **1****A 30 minute walkthrough**Built around your team, whether that is procurement, legal, IT or finance.

- **2****Your contracts, not ours**Bring a few sample agreements and watch Aavenir AI extract and review them.

- **3****ServiceNow or standalone**We show the deployment that fits the systems you already run.

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