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 Tennessee, a breach of contract occurs when one party fails to fulfill their obligations under a binding agreement, whether it's written or verbal. To successfully claim a breach of contract in a civil lawsuit, the plaintiff must establish 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. Tennessee follows the statute of limitations, which generally gives parties six years to file a breach of contract lawsuit for written contracts and three years for verbal contracts, starting from the date the breach occurred. If the court finds that a breach has occurred, the injured party may be entitled to various remedies, including compensatory damages to cover the losses incurred due to the breach, and in some cases, punitive damages, specific performance, or other equitable relief.