Breach of Contract breach your reputation

breach of contract

When two or more parties have an agreement, the best way to ensure that the process goes according to plan is by having a contract in place. Ideally, this written agreement outlines expectations and creates a legal obligation. The terms within a contract are enforceable by law, with straightforward remedies and penalties if the contract is breached.

Contracts are essential in business transactions because they ensure that all parties understand their agreement. When the contract is in a clear, written format, there is no room for misinterpretation. Signing a contract can ensure confidentiality, alleviate risks, and minimize potential disputes in the future. Additionally, good contracts optimize the effectiveness of operations by maintaining strong interactions and cooperation between all parties involved.

If one party in this binding agreement fails to deliver according to their requirements, it is known as a breach of contract. This breach of contract can occur with both written contracts and oral contracts. Ideally, the parties involved will resolve the breach of contract on their own through negotiations. But there are times when the issue needs to be taken to a court of law for resolution. In this situation, it’s essential that you hire a breach of contract attorney for assistance.

Elements of a Breach of Contract Claim

Your breach of contract lawyer will guide you through all the elements that need to occur for you to have a valid breach of contract claim:

Offer and Acceptance: First, the contract is only legally binding if there is an offer and acceptance by both parties. It’s necessary to establish evidence showing this offer and acceptance.
Consideration: Having consideration in a contract means that there is an exchange of something of value, as agreed within the terms of the contract.
Legal Purpose: The legal motivation for moving forward with a breach of contract claim is to resolve an ensuing dispute, and this legal purpose needs to be established.
Mutual Assent: Establishing mutual assent means that the two or more parties involved agreed on something together, free of fraud or duress, to move forward with the contract.
Performance Obligations: All parties involved have specific contractual obligations that need to be met. These obligations require specific performances that must be completed on time and according to the terms of the agreement.
Breach of Contract: When a contractual agreement encounters a stumbling block, it’s deemed a breach of contract. This breach transpires when one or more parties involved fail to fulfill their contractual obligations, and documenting this failure becomes crucial to substantiate a case. Breach of contract can manifest in various ways, including total non-performance, untimely completion, or deviation from the specified terms outlined in the agreement.

Types of Breach of Contract

There are various types of contract breaches, and all these situations can merit the assistance of an experienced attorney to pursue the case. Examples of breach of contracts include:

Material Breach: With a material breach of contract, it is a significant failure of one party to uphold their end of the agreement. The situation cannot be reconciled, which means it renders the contract to be seemingly pointless.
Minor Breach: Having consideration in a contract means that there is an exchange of something of value, as agreed within the terms of the contract.
Anticipatory Breach: If the non-breaching party has an excuse for non-performance, then it can fall in the category of an anticipatory breach. For example, one party might announce in advance that they don’t intend to fulfill their side of the agreement.
Actual vs. Constructive Breach: An actual breach emerges when a party involved fails to uphold their end of the bargain. A constructive breach happens when the party obligated to perform withdraws from the agreement before the predetermined timeframe.

Remedies for Breach of Contract

When a breach of contract case goes to court, the goal is to remedy the situation based on the plaintiff’s requests.

Damages:

Damages might be awarded based on the judge’s determinations. Calculating damages in a breach of contract can be complicated, which is why specific processes must be followed to evaluate and rule on the case. These damages in breach of contract cases might include:

Compensatory Damages:  Money awarded to the injured party to cover incurred loss, including injury or other related damages.
Consequential Damages:  Other damages that can be proven consequences because of the failure of one party to uphold their end of the contractual obligation.
Liquidated Damages: An estimate of hard-to-define losses, including intangible losses, incurred by one of the parties.
Punitive Damages (if applicable): In some cases, punitive damages are required, which exceed the basic compensation – for the purpose of punishing the defendant for their breach of contract.

Specific Performance

Another possible type of remedy for a breach of contract is when the court orders the breaching party to complete or perform their end of the agreement.

Rescission of a Contract

If there is a material breach of the contract, then the other party might have the right to cancel the contract. Rescission of a contract can be one-sided or mutual, depending on which parties agree to discharge the remaining obligations.

Restitution

When restitution is required, it means that money is awarded to one party to compensate for their losses in the breach of contract. The innocent party is awarded the value of the benefit they offered the other party while there was a valid contract.

Defenses to Breach of Contract Claims

If you are the defendant in a breach of contract claim, different defenses can be used in your case. Common defenses to breach of contract claims include:

Lack of Capacity: Evidence showing that the person in your business or organization who signed the contract was lacking in the capacity to make the agreement.
Duress and Undue Influence: The use of psychological pressure, force, threats, or coercion were used to influence someone into a contract.
Fraud and Misrepresentation: Intent matters when it comes to fraud and misrepresentation. If one party accidentally misrepresents a material fact, it can result in a breach of contract. On the other hand, fraud is the intentional misrepresentation of a material fact.
Mistake: If a mistake defense is used for breach of contract, then it means that erroneous beliefs of one or both parties caused them to enter into an agreement.
Impossibility or Impracticability: One party might argue that it is impossible to perform their end of the agreement, meaning there was literally no way to complete the requirements. Impracticality applies when unforeseen events make the performance unreasonably expensive or difficult.
Statute of Limitations for Breach of Contract: There is a limited timeframe in which a breach of contract lawsuit can be filed. If someone wants to make a breach of contract claim, but they don’t report it within the allotted time, then the claim is void.

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Seeking Legal Assistance for Breach of Contract

When a breach of contract occurs, it’s essential that you hire a breach of contract lawyer for assistance. Most people don’t know the right ways to navigate these claims and the legal system, and an attorney can help with case preparation and related court representation. A breach of contract attorney can help you get compensation, file a complaint, and even renegotiate the contract if necessary.

When you hire an attorney, they can help by reviewing the contract, evaluating the breach, and looking at the specific circumstances that led up to the problem. The attorney will help you understand your options for legal recourse in the situation. Then, the breach of contract attorney will prepare an argument with valid evidence to move forward with the case.

Choosing the Right Breach of Contract Lawyer

It’s critical that you choose the right lawyer to help with your breach of contract case. Having quality representation improves the likelihood that you will receive a positive outcome from these proceedings.

As you are choosing a breach of contract lawyer, look for someone who meets these requirements:

Experience and Expertise:

Your lawyer should have previous experience working on similar cases. Ask about their training and experience with other breach of contract claims, including cases comparable to your situation.

Track Record and Case Results:

Ask questions about the firm’s track record over the years. These case results matter because they give you an idea about the likelihood of your case being successful if it is argued by their attorney and law firm. Of course, results are never guaranteed. But a positive track record is a good indication that you are choosing an experienced breach of contract lawyer.

Client Testimonials and Referrals:

Request information about previous clients, including testimonials and referrals from people who have hired the lawyer in the past. Additionally, you can search online to find information about the attorney and law firm, including reviews from previous clients.

Frequently Asked Questions about Breach of Contract

What should I do if someone breaches a contract?

If a contract has been breached, the first step is to talk to the other party to find a resolution. When the situation can’t be resolved, then it might be necessary to pursue legal action. Calculate your losses to determine if you should move forward with a breach of contract claim. It’s often recommended to try mediation or arbitration before moving forward in court.

How long do I have to file a breach of contract lawsuit?

The statute of limitations depends on your location and the type of breach of contract that occurred. Usually, the timeframe is between 3 – 6 years after the act of negligence. But it might still be possible to file a claim after this timeframe if the discovery of negligence occurred later.

Can a breach of contract be resolved without litigation?

Yes, breach of contract disputes can often be resolved through mediation. Both parties are often motivated to settle the claim outside of court, so they will attempt to resolve the situation before a lawsuit is filed.

How are damages calculated in a breach of contract case?

Breach of contract damages can be calculated based on a variety of factors, including expectation damages, loss of value, costs avoided, and other related losses. The court will compare what would have happened to what actually happened and how this breach resulted in associated losses.

Hiring a Breach of Contract Attorney

Contract law can be complicated, which is why it’s best to hire an experienced breach of contract attorney for assistance. Not only will legal representation help you understand the breach of contract and your rights in the situation, but you will have someone to advocate on your behalf. The goal is to gain compensation or a remedy for the situation.

For more information about hiring a breach of contract attorney, reach out to us to schedule a consultation. You can explain your situation and learn potential ways to move forward. Legal processes are in place to protect your interests. Call our experienced team to learn more about your rights in a breach of contract case.