What Is a Breach of Contract in Personal Injury Law?

A breach of contract occurs when one party fails to fulfill their obligations as outlined in a legally binding agreement. While breaches of contract are more commonly associated with business and employment disputes, they can also arise in personal injury cases. For example, a breach may occur if an insurance company refuses to pay a claim or violates the terms of a settlement agreement. In such cases, the injured party may pursue legal action to enforce the contract and recover damages.

Key types of breach of contract relevant to personal injury cases:

• Material Breach: A significant failure to perform that undermines the agreement’s purpose, such as non-payment of settlement funds.
• Minor Breach: A partial failure to meet obligations, such as delays in providing promised benefits.
• Anticipatory Breach: When one party indicates in advance that they will not fulfill their contractual duties.

Why Is Breach of Contract Important in Personal Injury Cases?

Breach of contract can have serious consequences in personal injury cases, often affecting a victim’s ability to recover compensation. Its importance includes:

• Enforcing Insurance Claims: Ensures that insurers honor their policies and provide the agreed-upon coverage for medical expenses or damages.
• Protecting Settlements: Allows victims to take legal action if the opposing party fails to comply with a negotiated settlement.
• Compensation for Damages: Victims may recover financial losses resulting from the breach, including attorney fees and interest.

If a breach of contract impacts your personal injury case, consulting an experienced attorney can help protect your rights and secure the compensation owed under the agreement.