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 New Jersey, a breach of contract occurs when one party fails to fulfill their obligations under a binding agreement, whether written or verbal. To successfully claim a breach of contract in a civil lawsuit, the plaintiff must demonstrate that a valid contract existed, the plaintiff fulfilled their own contractual obligations or had a valid reason for not doing so, the defendant failed to fulfill their contractual obligations, and the plaintiff suffered damages as a result of the breach. New Jersey follows the 'Statute of Frauds' which requires certain types of contracts to be in writing to be enforceable, such as contracts for the sale of real estate or agreements that cannot be performed within one year. The statute of limitations for breach of contract in New Jersey is generally six years for written contracts and six years for verbal contracts, starting from the date the breach occurred. If the court finds a breach, the non-breaching party may be entitled to remedies such as compensatory damages, specific performance, or restitution, depending on the circumstances of the case.