Am I Liable for Breach of Contract if There’s No Money Involved?
Can a valid contract exist without money exchanging hands?
Absolutely. A contract exists where there is a meeting of the minds between two parties and value is being exchanged. That includes either money, services, or goods.
What is breach of contract? A breach of contract occurs when one party fails to fulfill their agreed-upon obligations in the agreement.
Disputes arising from breach of contract may include:
- Failing to deliver the agreed services
- Incomplete work
- Delivering subpar quality
- Making false claims
- Sharing confidential information
- Violating a non-disclosure agreement
A breach harms the other party who expected certain services, leading to potential damages. This is known as expectation damage, with costs based on the harm caused.
You are then liable for the damages and may face a costly lawsuit.
Act responsibly when entering contracts. Watch this video for more information.
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