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 Iowa, 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 pursue a breach of contract claim, the aggrieved party must demonstrate that a valid contract existed, that they performed their own contractual obligations or had a valid reason for not doing so, that the other party failed to perform their contractual duties, and that this failure resulted in damages. The statute of limitations for breach of contract in Iowa is generally 10 years for written contracts and 5 years for oral contracts, as per Iowa Code section 614.1. If the court finds that a breach has occurred, the non-breaching party may be entitled to remedies such as damages, specific performance, or contract rescission, depending on the circumstances of the breach and the terms of the contract.