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How is non-performance a breach of contract?

One of the main reasons that Moorestown businesses enter into business contracts is to create legal obligations between themselves and other parties for the execution or performance of business-related activities. Businesses contract with employees so that they have workers to handle their operational functions and they contract with other entities to secure the goods and services that they need to make their businesses run. Without contracts in place it can be very difficult for a business to know if its vendors, employees and partners will do what the business needs them to do.

A contract is created when one party makes an offer to the other and the party receiving the offer accepts it. The offer and acceptance process can be a negotiation of counter-offers, refusals and other actions before the contract is actually made. Once terms are agreed upon and the parties to the contract sign it, the document becomes a legally enforceable agreement that may hold up in court.

Failure of a contract happens when there is a breach by one of the parties. There are many ways that an agreement may suffer a breach of contract, but one of the most common ways that this difficult problem can occur is when one party simply fails to do what the party was supposed to do. Failure to perform or non-performance of duties under a contract may be grounds for one party to sue another for the damages sustained as a result of the unanticipated inaction.

When the parties to a contract execute their duties in accordance with the terms of the document, their business relationships often proceed without problems. However, non-performance, incomplete performance and other contractual breaches can halt business operations. There are a variety of remedies available to New Jersey businesses that are fighting their own contractual disputes.

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