Many people know what “litigation” means, but what exactly is commercial litigation? What does it entail, and what are the most common reasons to hire a commercial litigation lawyer?

Commercial litigation involves a dispute that comes into existence in the context of businesses engaging in their everyday operations and activities. Commercial litigation addresses things from breach of contract cases all the way up to complex litigation over the alleged violations of federal employee protection statutes.

Because commercial litigation frequently involves large entities with places of business in numerous states and countries, and because the cause of action for many forms of commercial litigation comes from federal statutes, a large portion of commercial litigation takes place in federal courts.

One of the most common needs for commercial litigation relates to breach of contract cases.

Breach of contract is a legal cause of action in which one or more parties to the contract do not honor a binding agreement by non-performance or interference with the other party’s performance. Breach occurs when a party fails to fulfill their obligation as described in the contact, communicates intent to fail the obligation, or otherwise appears to be unable to perform the obligation under the contract.

There are four kinds of contract breaches: anticipatory, actual, minor and material.

Anticipatory Breach vs. Actual Breach

Most breaches of contract fall into one of two categories. They can either be considered actual breaches or anticipatory breaches. An actual breach occurs when a party refuses to fulfill their side of the obligation to contract on the due date or performs incompletely. An anticipatory breach occurs when one party announces, in advance of the due date for performance, intent fail the obligation.

Minor Breach vs. Material Breach

Breaches of contract can also be minor or material. Typically, a material breach is when one party ends up with something completely different than what the contract specified. In most cases, a material breach means the non-breaching party is no longer required to perform their end of the deal and has a right to remedies.

A minor breach, sometimes called a partial breach, is when one party failed to perform some part of the contract even through the specified item or service was ultimately delivered.

At Thomas Weiss & Associates, P.C., our abilities and experience have proven successful for a variety of clients. We’ll be on your side every step of the way. Call us today to set up a free consultation.