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 Nevada, 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. Nevada 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, NRS 104.2101 et seq. outlines the Nevada Uniform Commercial Code, which governs sales of goods contracts. The statute of limitations for breach of contract in Nevada is generally six years for written contracts (NRS 11.190(1)(b)) and four years for oral contracts (NRS 11.190(2)(c)). If successful, the plaintiff may recover compensatory damages to put them in the position they would have been in had the breach not occurred, and in certain cases, punitive damages or specific performance may be awarded.