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 Pennsylvania, a breach of contract occurs when one party fails to fulfill their obligations under a binding agreement, whether it's 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 did what was required under the contract, the defendant failed to do what was required, and as a result, the plaintiff suffered damages. Pennsylvania follows the 'gist of the action' doctrine, which distinguishes between tort and contract claims, ensuring that a breach of contract is not improperly pleaded as a tort. The statute of limitations for breach of contract in Pennsylvania is generally four years for written contracts and two years for oral contracts. If the breach is found, the non-breaching party may be entitled to various remedies such as compensatory damages, specific performance, or rescission of the contract.