Prevention of performance breach of contract

 

A prevention of performance breach of contract occurs when one party in a contract takes an action, or series of actions, that makes it impossible for the other party to fulfill their contractual obligations. This effectively hinders or stops the other party from carrying out their side of the agreement.

 

 

Here’s a breakdown of key points about prevention of performance breach:

 

• ✅ Action by One Party: The breach arises from the actions (or inactions) of one party. This can be intentional or unintentional, but the outcome is that it prevents the other party from performing their duties.

 

• ✅ Impossibility of Performance: The key element is that the breaching party’s actions make it impossible for the other party to fulfill their obligations under the contract. There’s a difference between difficulty and impossibility. A minor inconvenience wouldn’t constitute a prevention of performance breach.

 

• ✅ Examples: Here are some scenarios that could be considered prevention of performance breaches:
  • ✔️ A landlord refusing access to a property for renovations contracted with a tenant.
  • ✔️ A client cancelling a pre-paid marketing campaign before the work begins, making it impossible for the marketing agency to complete their services.
  • ✔️ A supplier failing to deliver crucial materials needed for a construction project, hindering the contractor’s ability to complete the build.

 

 

Distinguishing from Other Breaches

 

It’s important to distinguish prevention of performance from other types of breaches:

 

• ✅ Non-Performance: In a non-performance breach, the party simply doesn’t do what they agreed to do. They might be able to perform later, but they haven’t fulfilled their obligations by the agreed deadline.

 

• ✅ Poor Performance: Here, the party technically completes the task, but the quality of work falls below the expected standard.

 

 

Remedies for Prevention of Performance Breach

 

If you believe you’ve been a victim of a prevention of performance breach, you might have a few options:

 

• ✅ Claim damages: You can sue for financial compensation for the losses you suffered due to the other party’s actions that prevented you from fulfilling your contractual obligations.

 

• ✅ Termination: You might be able to terminate the contract altogether, especially if the breach is material (see previous explanation of material breach).

 

• ✅ Seek specific performance (in rare cases): In some limited situations, a court might order the breaching party to take specific actions to allow you to perform your obligations under the contract.

 

 

Preventing Prevention of Performance Breaches

 

Here are some tips to help prevent such breaches in your contracts:

 

• ✔️ Clear and Detailed Contracts: Having a well-drafted contract that outlines the obligations of each party and includes clear language regarding access, materials delivery, or other potential roadblocks can help reduce misunderstandings and the possibility of unintentional prevention of performance.

 

• ✔️ Open Communication: Maintain open communication with the other party throughout the contract period. If any issues arise that could hinder performance, address them promptly and collaboratively.

 

• ✔️ Consider “Force Majeure” Clauses: Including a force majeure clause in your contract can help protect both parties in situations where unforeseen circumstances make performance impossible due to events beyond their control (natural disasters, strikes, etc.).

 

 

By understanding prevention of performance breach of contract and taking steps to mitigate its occurrence, you can safeguard your interests and ensure smoother contract execution for all parties involved.