Purchase agreements are legal documents that record the terms of a sale and purchase into a written, legally binding contract. They create enforceable contracts when both parties agree to the terms and sign the document. A breach of purchase agreement occurs when either party fails to perform their obligations and duties that are set out in the contract.
Either party can breach the agreement (seller or buyer). Some examples of breaches of purchase agreements include:
- Last minute sale to another party
- Failure to deliver goods on time
- Delivery of the wrong types of goods
- Failure to make full payment or payments as promised
- Refusal to make the purchase entirely
- Use of fraud by either party (for instance, mortgage fraud in a real estate purchase agreement)
Breaches can be proven by a number of means. Courts will mainly look to the original terms of the document to determine if there has been a breach. They will also examine the conduct of both parties after the alleged breach to determine all the facts surrounding the incident.
Breaches of purchase agreements may be remedied by a number of means. In most cases, a monetary damages award may suffice to help the non-breaching party recover their losses. This may be calculated according to the value of the product or goods being sold. Other losses can sometimes be factored into the damages award, such as loss of business profits. However, all losses need to be caused by the breach in some way.
In some cases, breaches of purchase agreements can also be remedied by other means, such as a rewriting of the agreement, or a mandatory delivery of the product, etc. These will all depend on the terms of the agreement as well as the nature of the breach.
Purchase agreements are very important documents and can sometimes be quite complex. You may wish to hire a business lawyer if you need help with a purchase agreement. Your attorney can help determine whether a breach has occurred, and if so, what types of remedies may be available. Your attorney can provide you with legal representation and consultation during trial if you need to file a lawsuit.