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 Arizona, a breach of contract occurs when one party fails to fulfill their obligations under a binding agreement, whether the contract is 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 performed their part or had a valid reason for not performing, the defendant failed to perform their obligations, and as a result, the plaintiff suffered damages. Arizona follows the Uniform Commercial Code (UCC) for the sale of goods, which may modify some of the general contract principles for those specific transactions. The statute of limitations for breach of contract in Arizona is six years for written contracts and three years for oral contracts, as per Arizona Revised Statutes Section 12-548 and Section 12-543, respectively. If a breach occurs, the non-breaching party is entitled to seek remedies such as damages, specific performance, or cancellation and restitution.