What Causes Breach of Contract Disputes in Business?

 Posted on April 11, 2025 in English

Contracts are how the world does business. Whether you own a restaurant, manage a busy dental practice, or sell an obscure but essential piece of machinery, you are likely to enter into a legal agreement or two (or twenty-five) while doing business. What happens when things do not go as planned, and the other party does not fulfill one or more of their obligations under the contract? You may have a breach of contract dispute on your hands. These are almost as common in business as contracts themselves. An experienced Rockville, MD contract dispute attorney understands the common causes of breach of contract disputes that can arise in business and can represent you in a lawsuit to recover from the breach.

Disagreement Over Nature of Goods

Sale of goods contracts are so common, and can give rise to so many legal issues, that they have their own set of laws in Article 2 of the Uniform Commercial Code (UCC) that governs many commercial transactions. Sale of goods contracts often lead to disagreements, especially due to misunderstandings or vague contract language. A typical situation might involve a wholesaler who delivers thousands of units of a product that the buyer finds unsatisfactory, or goods that are sent on time but do not arrive on time.

Ambiguous Contract Language

When a contract is open to various interpretations, it can lead to serious and difficult-to-solve disputes. For example, if a contract specifies that a construction project must be completed in a timely manner, but the owner is not satisfied with the completion date, both parties can argue that they fulfilled their obligations, and it will be up to a court to determine whose side of the story wins.

Failure to Perform

This is a classic reason for a breach of contract dispute. If a party claims that the other party did not perform their obligations under the contract, this can lead to lawsuits. Sometimes a party may claim that the other party failed to perform when they did not deliver the services at all, and sometimes they will claim that a party failed to perform when the performance was so far from what the contract stipulated that it can be considered nonperformance.

Disputes About Payment

Another major source of contract disputes is when one party does not fulfill its financial obligations. This can get complicated when the party that did not pay argues that they were entitled not to pay because the other party did not fulfill its obligations.  

Call a Rockville, MD Contract Dispute Lawyer

Here at Salvado Law Offices, we pride ourselves on representing our clients diligently and attentively. If you are experiencing difficulties with a client, vendor, or other party who has breached the terms of your agreement, the experienced Gaithersburg, MD contract dispute attorney can represent your interests. Call our offices for a consultation to discuss the situation.