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 Idaho, 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, the plaintiff performed their part or had a valid reason for not performing, the other party failed to perform their obligations, and as a result, the plaintiff suffered damages. Idaho follows the principles of common law for contract disputes, but also has specific statutes that may apply depending on the type of contract involved. For example, the Idaho Statutes Title 28 contains the Uniform Commercial Code which governs commercial transactions. The statute of limitations for breach of contract in Idaho is generally five years for written contracts and four years for sales under the Uniform Commercial Code, but it can vary depending on the circumstances. If successful, the plaintiff may recover compensatory damages to cover the losses incurred due to the breach. In some cases, other types of damages such as consequential or punitive damages may also be awarded.