Final answer:
When there is a breach of contract, the injured party has the right to seek legal recourse, often through the court system. This is based on the fundamental principle of protecting property rights, where services rendered are considered property. The ability to enforce contracts legally is crucial for economic transactions and growth.
Step-by-step explanation:
A breach of contract gives the damaged party the right to seek legal action in a variety of ways. Contractual rights are essential as they are based on property rights and allow individuals to create agreements with others concerning the use of their property. As an example, in an employment agreement, a skilled surgeon who operates on a patient has the expectation of payment. If the patient fails to pay, it is considered a theft of property, the property being the services rendered by the surgeon.
In a system where property and contractual rights are upheld, entities can seek recourse through the legal system if there is noncompliance. The surgeon in the given example could use the court system to seek payment. This enforcement is fundamental in encouraging the formation of agreements and sustaining economic activity. Without it, the apprehension over non-payment might hinder business transactions and economic growth. The Seventh Amendment of the United States Constitution also supports this by providing the right to a jury trial for civil disputes, ensuring that individuals and businesses have a means to resolve disputes and enforce contracts through the courts.