Building a home can be an exciting journey filled with hopes and expectations. The foundation of it all is a contract that enumerates your specifications and holds your plans in place. However, if you suspect your contractor may have breached the contract, it can quickly turn into a stressful situation.
A breach occurs when one party fails to fulfill their obligations as outlined in the agreement. However, not all breaches are on the same level. Knowing the difference between minor and major breaches can be essential in determining your next steps.
Recognizing minor breaches
Minor breaches, while frustrating, don’t typically derail the entire project. Also known as a partial or immaterial breach, it occurs when the contractor fails to meet a small portion of the contract. These might include:
- Small delays in the timeline
- Minor deviations from specifications
- Communication lapses
Minor breaches generally don’t entitle you to terminate the contract. While these issues shouldn’t be ignored, they often can be resolved through open communication and negotiation.
Identifying major breaches
A major breach, also known as a material breach, significantly impacts the contract’s core purpose. It often prevents you from moving forward with the project as planned. Examples include:
- Substantial delays in completion
- Use of substandard materials
- Failure to obtain necessary permits
These breaches can result in significant financial losses or render the project unusable. Major breaches give you the right to terminate the contract and sue for damages or specific performance, where the court orders the contractor to fulfill their obligations.
Seeking legal action
In both situations, documentation is key. Keep records of all communication, construction photos and copies of the contract. Indiana law offers remedies for breach of contract, including requiring the breaching party to fulfill their obligations or seeking compensation for damages. Consider legal counsel if communicating with your contractor does not resolve the issue. A legal professional may help determine the severity of the breach and provide guidance on the recommended course of action. Being aware of your options can help you address issues promptly and keep your dream home on track.
