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 Oregon, a breach of contract occurs when one party fails to fulfill their obligations under a binding agreement, whether 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 doing so, the defendant failed to perform their obligations, and as a result, the plaintiff suffered damages. Oregon follows the statute of limitations, which generally gives parties up to six years to file a lawsuit for breach of contract under ORS 12.080, although this period may vary depending on the specific type of contract. If the breach involves a sale of goods, the Uniform Commercial Code as adopted in Oregon may apply, specifically ORS 72.7250, which provides a four-year statute of limitations. Successful claimants may recover various types of damages, including compensatory damages to cover the loss, consequential damages for additional losses caused by the breach, and in some cases, punitive damages or specific performance if monetary damages are insufficient.