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Breach of Contract as a Cause of Action in Connecticut

A breach of contract occurs when one party to a legally binding agreement fails to fulfill their obligations, resulting in harm or loss to the other party. In Connecticut, the courts have clearly outlined the elements required to establish a breach of contract claim. These elements for breach of contract are:

  1. The Formation of an Agreement
  2. Performance by One Party
  3. Breach of the Agreement by the Other Party
  4. Damages

This article will break down each of these elements to provide a clear understanding of what a breach of contract entails under Connecticut law.

1. Formation of an Agreement

The first element in any breach of contract claim is proving that a valid agreement was formed. An agreement can be oral or written, but it must satisfy the following conditions:

  • Offer: One party makes a clear proposal to do something or refrain from doing something.
  • Acceptance: The other party agrees to the terms of the offer.
  • Consideration: Both parties exchange something of value, such as money for services.

In Connecticut, written agreements are generally preferred because they provide clearer evidence of the parties’ intentions. However, oral agreements can also be enforceable if the essential terms are sufficiently specific and both parties intended to be bound. Contracts that fall under the Statute of Frauds—such as those involving real estate or contracts that cannot be performed within one year—must be in writing to be enforceable.

2. Performance by One Party

The second element requires the plaintiff to demonstrate that they performed their obligations under the contract. For instance, if a homeowner hires a contractor to paint the interior of their home, paying the agreed-upon amount in full, this payment constitutes their performance.

If the plaintiff did not perform their obligations or materially breached the contract first, they may not be able to pursue a breach of contract claim unless the nonperformance was excused by the other party’s actions.

3. Breach of the Agreement by the Other Party

The third element is proving that the other party failed to meet their contractual obligations. A breach can be:

  • Material Breach: A significant failure to perform that defeats the purpose of the contract. For example, a contractor failing to complete an interior painting job as agreed would likely constitute a material breach.
  • Minor Breach: A less significant failure that does not undermine the contract’s overall purpose. The non-breaching party may still be entitled to remedies, but they are typically less severe.

Courts in Connecticut examine the facts of each case to determine whether the breach was material. Factors such as the intent of the breaching party, the extent of the nonperformance, and the impact on the non-breaching party’s expectations are considered.

4. Damages

Finally, the plaintiff must show that the breach caused them to suffer damages. Connecticut law allows for several types of damages in breach of contract cases, including:

  • Compensatory Damages: Designed to place the non-breaching party in the position they would have been in had the contract been fully performed. For example, this might cover the cost of hiring another contractor to complete the job.
  • Consequential Damages: Losses indirectly caused by the breach, such as lost business revenue due to delays in completing the project.
  • Liquidated Damages: Pre-agreed amounts specified in the contract as compensation for a breach.
  • Specific Performance: A court order requiring the breaching party to fulfill their obligations under the contract, typically used when monetary damages are inadequate.

It’s important to note that damages must be foreseeable and quantifiable to be recoverable.

Key Considerations

While the elements of breach of contract are straightforward, the nuances of each case can be complex. For example, the existence of valid defenses, such as duress, fraud, or impossibility of performance, can impact the outcome.

Conclusion

Breach of contract is a common cause of action in Connecticut and provides a legal pathway for individuals and businesses to seek remedies when agreements are broken. Understanding the elements—formation of an agreement, performance, breach, and damages—can help parties navigate their rights and responsibilities under the law. If you believe you have experienced a breach of contract, documenting the agreement, your performance, and the resulting damages will be crucial in pursuing a claim.

Find the Law

“The elements of a breach of contract action are the formation of an agreement, performance by one party, breach of the agreement by the other party and damages.” CCT Communications, Inc. v. Zone Telecom, Inc., 324 Conn. 654, 153 A.3d 1249 (2017).