Lexipedia

Breach of contract

Breach of contract occurs when a party fails to perform a contractual obligation properly, triggering remedies such as performance or damages.

Breach of contract is the non-performance, late performance or defective performance of a contractual obligation. Under Swiss law, the consequences depend on the type of obligation, fault where required, notice or grace-period requirements, and any valid contractual allocation of risk. Remedies may include performance, damages, price reduction, termination or rescission-like effects, depending on the contract and circumstances. The injured party must usually show the contract, breach, loss and causation, while mitigation and proof issues can be decisive. Contractual clauses may limit liability or define consequences, but mandatory law and good faith restrict abusive arrangements. In international contracts, governing law and dispute-resolution clauses strongly influence available remedies and procedural strategy.