Breach of employment contract occurs when either the employer or the employee violates one or more terms of the contract. It should be pointed out that there are actually three types of employment contracts: implied (the terms are not written, but are implied in fact or law), written (the contractual terms are explicitly spell out), and oral (the terms are agree upon by mutual communication). The contract explains the duties to be carried out, who the employee answers to, fringe benefits, conditions for receiving bonuses, the responsibilities of the employer, etc. With these things in mind, breach of contract can occur when any of these stipulations are not met by either side. For instance, if the employee does not achieve the standards of the contract, or if the employer does not pay a bonus to which the employee is contractually obligated, breach of contract has occurred. At this point, the contract can either be renegotiated, or both sides will have to live by terms for dismissal as they are spelled out in the contract.