Breach of contract is a cause of action or claim in civil litigation (lawsuits) that provides the legal basis for a person or entity to recover its damages/losses when another person or entity breaches an enforceable written or verbal agreement (contract) by breaking one or more promises in the agreement.
In Alabama, a breach of contract occurs when one party fails to fulfill their obligations under a binding agreement, whether written or verbal. To successfully claim a breach of contract in a civil lawsuit, the plaintiff must establish that a valid contract existed, the plaintiff fulfilled their own contractual obligations or had a valid reason for not doing so, the defendant failed to fulfill their contractual obligations, and the plaintiff suffered damages as a result of the breach. Alabama follows the common law principles for contract litigation, and the statute of limitations for breach of contract claims is generally six years for written contracts and four years for oral contracts, as per the Alabama Code Section 6-2-34. If the breach is material and goes to the essence of the contract, the non-breaching party may be entitled to remedies such as damages, specific performance, or contract rescission.