In Oklahoma, contracts are the backbone of business, real estate, employment, and service relationships. When one party fails to live up to their end of the bargain, it’s known as a breach of contract—and it can lead to serious legal consequences. But what exactly counts as a breach, and what happens when one occurs? Here’s what you need to know if you’re dealing with a potential contract dispute.
What is a Breach of Contract?
A breach of contract occurs when one party fails to perform a duty or obligation required under the terms of a legally binding agreement. This can include:
- Failing to deliver goods or services on time
- Not paying as agreed
- Delivering substandard work or materials
- Abandoning the agreement without a valid reason
In Oklahoma, for a contract to be enforceable, it must include an offer, acceptance, consideration (something of value exchanged), and clear terms. Once these elements are in place, each party is legally bound to fulfill their responsibilities.
Types of Breach
1. Material Breach
This is a serious violation that goes to the heart of the contract, and it often allows the non-breaching party to sue for damages or cancel the contract entirely.
2. Minor (or Partial) Breach
This involves a smaller failure to meet part of the agreement, but the overall contract can still be completed. The non-breaching party may still recover damages.
3. Anticipatory Breach
This happens when one party makes it clear—through words or actions—that they will not fulfill their obligations, even before the performance is due.
4. Actual Breach
This is a direct failure to perform when performance is due.
What Happens After a Breach?
If someone breaches a contract, the non-breaching party may take legal action to recover damages or enforce the contract. Oklahoma courts may award:
- Compensatory damages: Money to cover the loss caused by the breach
- Consequential damages: Losses that result indirectly from the breach (like lost profits)
- Liquidated damages: Pre-agreed amounts written into the contract
- Specific performance: A court order requiring the breaching party to fulfill their obligation
- Cancellation and restitution: Ending the contract and returning the parties to their original positions
The remedy often depends on the nature of the breach and the language in the contract.
Common Examples in Oklahoma
- A contractor fails to finish a remodel project after receiving full payment
- A vendor delivers the wrong materials, delaying a construction job
- A business partner withdraws from an agreement without notice
- A tenant moves out before the end of a lease without paying penalties
In each of these situations, Oklahoma courts will consider the contract language, evidence of the breach, and the damages suffered when determining the appropriate remedy.
What You Should Do If a Contract Is Breached
If you believe the other party has breached your contract, you should:
- Review the agreement carefully
- Document the breach with emails, invoices, or witness statements
- Attempt informal resolution when possible
- Consult with an attorney to protect your rights and explore your legal options
Time is important in contract cases. In Oklahoma, the statute of limitations for a written contract is typically five years, and for an oral contract, it’s three years.
Wagoner Contract and Business Law Attorneys
Whether you’re the injured party or accused of breaching an agreement, our team at Wagoner County Attorneys are here to give you the answers you need. For a free consultation, call us today at 918-283-7394, or reach out to us on our Ask A Lawyer page.
