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 North Dakota, 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 fulfilled their own contractual obligations or had a valid reason for not doing so, that the other party failed to fulfill their contractual obligations, and that this failure resulted in damages. North Dakota follows the statute of limitations, which requires that a lawsuit for breach of contract must be filed within six years for written contracts and within three years for oral contracts, as per North Dakota Century Code (NDCC) sections 28-01-16 and 28-01-16.1 respectively. If the court finds that a breach has occurred, the non-breaching party may be awarded damages to compensate for the losses incurred due to the breach. These damages are typically designed to put the non-breaching party in the position they would have been in had the contract been properly performed.