Types of Breach of Contract

Understanding the types of breaches helps you respond appropriately:

Minor Breach (Partial Breach): A small part of the agreement is not fulfilled but the project continues.
Example: delayed feedback from a client can be considered a minor breach of contract.

Material Breach: A serious violation affecting the contract’s core purpose.

Example: a client refuses to pay after receiving the completed work.

Anticipatory Breach: When one party signals in advance that they will not fulfill their obligations, it may indicate a breach of the contract.
Example: a client informs you mid-project they cannot pay upon completion.

Actual Breach: This occurs when one party fails to meet the contract terms, allowing the other party to recover damages. One party outright fails to meet their responsibilities.

Example: A freelancer misses a deadline or a client ignores payment terms.

Legal Remedies to Resolve a Contract Breach

Freelancers have several remedies if a contract breach occurs. Choosing the right option depends on the severity of the breach, relationship with the client, and the type of contract.

1. Negotiation and Mediation

Communication is often the most effective first step in helping to prevent issues related to contract terms. Many disputes arise from misunderstandings. By discussing the situation calmly, revisiting the agreed-upon terms, and seeking a compromise, you can often resolve the issue without escalation.

If communication fails, mediation can help. Bringing in a neutral third party person can help both sides discuss the problem and find a solution. It is faster, less expensive, and helps maintain good professional relationships.

Example: If a client delays providing content, causing a minor project delay, discussing the issue and agreeing on new deadlines can prevent conflict from escalating.

2. Sending a Formal Legal Notice

If negotiation fails, a formal legal notice can be issued, requesting that the client fulfill their obligations. This document highlights the contract law principles applicable to this agreement and:

• Details the breach

• References the exact points of the contract not met

• Sets a clear deadline for the client to meet their obligation.

Clients often respond quickly to legal notices, as it shows seriousness and potential legal escalation. Keep the notice professional, factual, and well-documented, including dates and completed work, to back up your request for payment.

3. Claiming Damages

If a breach results in lost income, freelancers can request payment to cover it.

Damages may cover:

• Payment for work already completed

• Additional expenses incurred due to the breach

• Lost opportunities from project delays or cancellations

Example: If a client cancels a project after you’ve completed 80% of the work, you can claim payment for what was delivered plus any expenses incurred.

4. Specific Performance

In some cases, money is not enough. Specific performance is when a court orders the client to carry out their obligations under the contract.

Example: A client promised unique resources needed for your project but fails to provide them. The court can ask the client to deliver these resources, allowing you to complete the work as agreed.

5. Contract Termination

When the relationship becomes unworkable, it may be due to a breach of the contract. terminating the contract may be necessary. This ends your obligations and prevents further losses.

You can claim payment for any work you completed before ending the contract. Keep clear records of your work, milestones, and communications in case any disputes come up later.

6. Using Secure Payment Platforms

As the saying goes, ‘Prevention is better than cure,’ it’s better to prevent payment issues than to fix them later. Reliable payment platforms let freelancers receive money safely and keep everything organized. This is where Infinity steps in.

InfinityApp offers:

• Clear transaction records to reduce disputes

• Safe cross-border payments for international clients

• No hidden charges or FX markup, only charges a flat 0.5% fee

Using a secure platform like Infinity helps minimise payment issues and provides freelancers with proof if legal action is ever required

Conclusion

Breach of contract can be stressful, but knowing your rights and remedies helps you stay in control. Clear contracts, open communication, and legal options like negotiation, claims, or termination, etc allow you to protect your work and income.

Freelancers often face issues when receiving payments from clients abroad. InfinityApp makes managing international transactions easy and reliable, giving you a secure way to get paid on time while you focus on delivering your best work.

Sign up today!

FAQs

1. What should I do if a client breaks my contract?

   
   Try talking to them first and sorting things out before taking legal steps.

   
   

2. Can I take legal action if a client doesn’t pay?

   
   Yes, you can send a legal notice and ask for compensation if needed.

   
   

3. How can freelancers prevent contract problems?

   
   Use clear contracts, break payments into milestones, and use secure payment platforms.

   
   

4. What are the most common contract issues freelancers face?

   
   Late payments, projects being canceled, extra work without pay, and missed deadlines.

   
   

5. How does InfinityApp help with payment issues?

   
   It keeps transactions safe, tracks payments, and provides proof if any disputes come up.