A contract can be an oral agreement or a written agreement usually involving a promise to do something, or to not to do something, in exchange for some benefit. A breach of contract exists when, following the exchange of promises, one side breaks their promise, and the other side suffers damages as a result. These situations may involve a sale of consumer goods, or a sale of services, a business agreement or a contract of employment. There are all sorts of ways in which a contract may be found to be breached, such as the goods are poor quality, or the services fail to meet standard, one party simply fails to perform or the employee is terminated or fired before the employment was supposed to end. If a breach has occurred, then there are different ways in which to calculate the fair amount of damages which the breaching party should pay.
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