Skip to content
Aavenir Atlas early access is open Contractflow on the ServiceNow Store since 2019 Runs on ServiceNow, or standalone ProcureTech100 2025/26 Pioneering Digital Solution ISO/IEC 27001:2022 certified, SOC 2 Type 2 compliant

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.

Schedule a Demo All Glossary Terms

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 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 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 Contract lifecycle management Contract lifecycle management is the process of managing a contract from the first request through drafting,.Read more

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.

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.

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.

Have a question we have not answered? Ask the Expert

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.

Prefer to talk first? Contact the team.