What is a Breach of Contract?

A breach of contract occurs when one party fails to fulfill their obligations under a legally binding agreement. For example, a contractor who abandons a renovation halfway, or a commercial landlord who refuses access to leased space, may have breached their contract.

Understanding breach scenarios is crucial for protecting your legal and financial interests.

To prove a breach, these key elements must exist:

1. A valid contract — There must be a legally enforceable agreement with offer, acceptance and consideration.
2. Defined obligations — Each party’s duties must be clear and specific.
3. Failure to perform — One party didn’t fulfill their obligations as agreed.
4. No valid legal excuse — There’s no lawful reason (like impossibility or frustration) for non-performance.

Not every breach carries the same weight. Courts categorize breaches based on severity and effect.

A small failure where most obligations were met.

Example: A contractor finishes your renovation but uses different tiles than agreed. You may claim damages, but the contract still stands.

The most severe type of breach, striking at the heart of the contract.

Example: Buying a property for a restaurant that turns out contaminated — you can terminate the agreement and claim all resulting losses.

Occurs when a party indicates before the performance date that they won’t fulfill their obligations.

Example: A supplier warns you they won’t deliver goods weeks before the due date.

Damages (Monetary Compensation)

The most common remedy. Covers both direct losses (money paid for undelivered services) and consequential losses (like lost profits).

Specific Performance

A court order requiring the breaching party to perform their contractual duties — often used for unique assets such as real estate.

Rescission

Cancels the contract, returning both parties to their pre-contract positions. Common in cases of fraud, misrepresentation, or duress.

Restitution

Requires a party to return benefits unjustly received under a contract (for example, refunding a deposit).

Injunction

Stops someone from violating a contract — often used in non-compete or confidentiality breaches. The appropriate remedy depends on the type of contract, severity of the breach, and impact on the innocent party.

Contract disputes can be complex and costly. At Pinto Shekib LLP, our civil and commercial litigation lawyers help clients across Toronto and Ontario resolve contract disputes efficiently and strategically.

We provide:

• Practical advice on your legal options.
• Clear assessment of risks, costs, and potential recovery.
• Skilled negotiation and courtroom representation.

📞 Call: 416-901-9984
📧 Email: info@pintoshekib.ca