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 Delaware, a breach of contract occurs when one party fails to fulfill their obligations under a binding agreement, whether it's written or verbal. To pursue a claim for breach of contract in Delaware, the plaintiff must establish that a valid contract existed, the plaintiff performed their obligations or had a valid reason for not performing, the defendant failed to perform their obligations, and as a result, the plaintiff suffered damages. Delaware follows the objective theory of contracts, meaning the court looks to the parties' outward expressions (what they said or did) rather than their subjective intentions. The statute of limitations for breach of contract in Delaware is three years for personal contracts and four years for contracts governed by the Uniform Commercial Code, which typically involves the sale of goods. If a breach is proven, the non-breaching party may be entitled to remedies such as compensatory damages, specific performance, or rescission of the contract.