§ 25-21,151.Construction of contract; before or after breach.

Article 21: Special Proceedings and Actions · Last amended 1929 · Last verified July 22, 2026

In one sentenceThis short section confirms that a contract may be construed by a Nebraska court either before or after a breach of that contract has occurred.

Full Text of § 25-21,151

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A contract may be construed either before or after there has been a breach thereof.

Source

Laws 1929, c. 75, § 3, p. 257; C.S.1929, § 20-21,142; R.S.1943, § 25-21,151.

Plain-English Summary

Section 25-21,151 removes a timing question that might otherwise slow down a declaratory action over a contract. A contract may be construed either before or after there has been a breach. Parties do not have to wait until one side has already broken the agreement, and defaulted or suffered a loss, before asking a court what a disputed clause means.

Read together with section 25-21,150, this section confirms that the whole point of declaratory relief in the contract setting is to settle a question of meaning while the parties still have a chance to act on the answer, rather than only after a dispute has already turned into a breach and a claim for damages.

Frequently Asked Questions

Do I have to wait for the other party to break the contract before asking a court to interpret it?

No. Section 25-21,151 states that a contract may be construed either before or after a breach.

Why would a court interpret a contract before anyone has breached it?

Because the purpose of declaratory relief is to resolve uncertainty over rights and obligations while the parties can still act on the answer, rather than waiting for a dispute to escalate into a breach.

Does this section apply to every kind of contract?

The section refers generally to "a contract," consistent with the broader declaratory judgment provisions in sections 25-21,149 and 25-21,150 covering written contracts and other contract-forming writings.

Does construing a contract before breach change how a court reads it?

No. The section addresses only the timing of when a court may construe the contract, not a different standard for how it is construed.

Is this section its own separate cause of action?

It works alongside section 25-21,150, which grants the right to seek a declaration of rights under a contract; this section confirms that timing before a breach is no barrier.

Source & verification. Section text and the amendment-history citation are reproduced verbatim from the Nebraska Legislature, Revisor of Statutes, enacted by the Nebraska Legislature. Last verified July 22, 2026. · Official source

Also known as: construe contract before breachdeclaratory judgment contract dispute timinginterpret contract before defaultpre-breach contract interpretation nebraskacontract construction declaratory relief