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 Illinois, a breach of contract occurs when one party fails to fulfill their obligations under a binding agreement, whether written or oral. 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 of the agreement or had a valid reason for not doing so, the defendant failed to perform their obligations, and as a result, the plaintiff suffered damages. Illinois follows the common law principles governing contracts and also has specific statutes that may apply depending on the type of contract involved. Remedies for breach of contract in Illinois can include compensatory damages, which aim to put the non-breaching party in the position they would have been in had the breach not occurred, as well as other potential remedies such as specific performance or liquidated damages, if these are specified within the contract.