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 Utah, 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 contractual duties or had a valid reason for not performing, the defendant failed to perform their obligations, and as a result, the plaintiff suffered damages. Utah follows the principles outlined in the Restatement (Second) of Contracts and the Uniform Commercial Code (UCC) for the sale of goods. The statute of limitations for breach of contract in Utah is generally six years for written contracts and four years for contracts for the sale of goods under the UCC. If successful, the plaintiff may recover compensatory damages intended to put them in the position they would have been in had the breach not occurred. Other remedies, such as specific performance or rescission, may also be available depending on the circumstances of the breach.