Contracts are an essential part of everyday personal and business transactions. They establish the obligations of the parties and provide certainty about what each party is expected to do. However, a contract does not always go according to plan. One party may fail to pay, refuse to deliver goods or services, perform an obligation late, or otherwise fail to comply with the terms of the agreement. When this happens, the affected party may have a legal claim for breach of contract in Nigeria. Understanding what constitutes a breach of contract, the different types of breach, and the remedies available can help individuals and businesses protect their interests when contractual obligations are not fulfilled. What Is a Breach of Contract? A breach of contract occurs when a party fails to perform an obligation required under a legally enforceable contract without lawful justification. A breach may occur where a party: Fails to perform an agreed obligation. Performs an obligation inadequately. Performs an obligation late. Refuses to perform the contract. Does something expressly prohibited by the agreement. Whether a particular act amounts to a breach depends on the terms of the contract and the circumstances of the case. Common Examples of Breach of Contract Breach of contract can occur in many situations. Examples include: A buyer fails to pay for goods supplied. A contractor fails to complete agreed work. A supplier fails to deliver goods as agreed. A tenant breaches an obligation contained in a tenancy agreement. A service provider fails to provide the agreed services. A business refuses to honour an agreed commercial arrangement. A party fails to meet an agreed deadline where time is contractually important. The consequences will depend on the nature and seriousness of the breach. Types of Breach of Contract 1. Actual Breach An actual breach occurs when a party fails to perform an obligation when performance is due. For example, if a supplier is required to deliver goods on a specified date but fails to do so, the failure may constitute an actual breach. 2. Anticipatory Breach An anticipatory breach occurs where, before the time for performance arrives, one party clearly indicates that they will not perform their contractual obligations. For example, if a contractor informs the client before the agreed completion date that the contractor will not carry out the work at all, the circumstances may give rise to an anticipatory breach. The appropriate response depends on the terms of the contract and the applicable law. How Do You Know If a Contract Has Been Breached? The first step is to examine the contract itself. Look at: The obligations of each party. Performance deadlines. Payment provisions. Termination provisions. Conditions precedent. Notice requirements. Dispute resolution provisions. Clauses dealing with default or breach. It is important not to assume that every failure to perform automatically gives rise to the same legal remedies. What Should You Do When a Contract Is Breached? Step 1: Review the Contract Read the agreement carefully and identify the obligation that has allegedly been breached. Pay particular attention to clauses dealing with default, notice, termination, dispute resolution, and remedies. Step 2: Preserve Relevant Evidence Keep documents that may establish the existence of the contract and the breach. These may include: The signed agreement. Invoices. Receipts. Bank statements. Emails. WhatsApp messages. Delivery records. Photographs. Correspondence between the parties. Electronic communications can also be important evidence depending on the circumstances. Step 3: Notify the Other Party Depending on the contract and circumstances, you may notify the other party of the breach and request that it be remedied. The contract may specify how such notice must be given. Step 4: Consider a Demand Letter Where appropriate, a lawyer may issue a formal demand letter setting out the breach and the action required from the defaulting party. A demand letter may give the parties an opportunity to resolve the dispute without commencing litigation. Step 5: Consider Negotiation or Alternative Dispute Resolution Litigation is not always the best first option. Depending on the contract, parties may consider: Negotiation. Mediation. Arbitration. Other agreed dispute-resolution mechanisms. A negotiated settlement can sometimes resolve the dispute more quickly and at lower cost. Step 6: Consider Legal Action If the breach cannot be resolved amicably, the affected party may consider commencing legal proceedings. The appropriate claim and court procedure will depend on the nature of the contract, the relief being sought, and the applicable law. Remedies for Breach of Contract in Nigeria A party who suffers loss because of a breach may have access to one or more legal remedies, depending on the circumstances. 1. Damages Damages are a monetary remedy intended to compensate a party for loss resulting from the breach, subject to applicable legal principles. The claimant must establish the basis for the damages claimed and satisfy the applicable requirements for recovery. 2. Specific Performance Specific performance is a court order requiring a party to perform a contractual obligation. It may be considered where monetary compensation would not adequately remedy the claimant’s loss and the requirements for the remedy are satisfied. It is not automatically granted in every breach of contract claim. 3. Injunction In appropriate circumstances, a party may seek an injunction to restrain another party from carrying out a particular act or, in some cases, to perform a particular action. Whether an injunction is available depends on the facts and applicable legal principles. 4. Rescission In appropriate circumstances, a contract may be rescinded, bringing the contractual relationship to an end and potentially restoring the parties to their pre-contractual positions, subject to the applicable law. Rescission is not available in every contractual dispute and should be distinguished from termination for breach. 5. Termination A contract may sometimes be terminated following a sufficiently serious breach or in accordance with an express contractual termination clause. The right to terminate depends on the terms of the agreement and the applicable law. Can You Sue for Breach of Contract Without a Written Contract? A written contract provides strong evidence of the parties’ agreement, but