Breach of Contract
The days of handshake agreements or an agreement based on someone’s word are long gone. Most everything you agree to is done by way of you signing a document, sometimes multiple documents. These documents are known as contracts.
When parties enter into a contract they each expect that the other will abide by the terms and conditions of the contract. Unfortunately, this is often not the case with one or both of the parties to the contract do something that the contract either forbids. This is considered a breach of contract.
When a contract is breached, it can have far-reaching consequences for multiple individuals or entities. A breach of contract lawyer can help you file a case for compensation by helping you compile evidence. A distinguished fraud attorney can guide you through the recovery process.
What Happens When a Contract is Breached?
Contract breaches occur frequently in the business world, and often, multiple parties will attempt to have the contract enforced in a different manner. In most cases, one party will accuse the other of breaching the contract, and the accused party will often point to unfair terms or deceptive tactics used by the accusing party.
If all resolution attempts fail, one party will usually file a lawsuit against the other, and most contract breaches are resolved in small claims court. If one party wishes to settle the breach outside court, they can arrange to have a mediator resolve the issue in a less formal setting. Either way, all parties involved will need the help of a breach of contract lawyer.
How is Breach of Contract Remedied
A breach of contract can be remedied in a variety of ways. Depending on the nature of the contract, the court may require the individual responsible for the breach do one of three things. They may ask that they perform the duties they originally agreed to perform when the contract was signed which is referred to as a specific performance. Most parties will file suit for monetary compensation after a breach of contract. If the court agrees with the party filing suit, the other party may be required to pay a set amount of money. If the terms of the contract are questionable or not able to be enforced, the court may cancel the contract altogether.
Types of Damages?
When a contract is breached, more than likely, one party will petition for financial compensation or damages. Depending on the nature of the breach, one party may seek to recover some of the following types of damages:
- Punitive Damages: These types of damages are meant to punish the party that breached the contract
- Consequential Damages, also known as special damages, are damages that can be proven to have occurred because of the failure of one party to meet a contractual obligation. These damages go beyond the contract itself and into the actions garnished from the failure to fulfill
- Compensatory Damages, meaning, the breach caused a party to lose money, the party responsible for the breach may be required to pay the other part
- Liquidated Damages: Liquidated damages are outlined in the contract itself, and they are usually an estimate of potential damages that will result from a breach of the original contract
- Nominal Damages: Nominal damages are awarded even if the party filing suit did not lose money
Depending on the nature of the breach, a party may be able to receive one or all four of the damage types listed above. If a person wants to recover damages, they will probably need help from a breach of contract lawyer.
Breach of Contract Disputes
If you are involved in a contract dispute, it would be wise to hire a breach of contract lawyer from Slater Grant before the situation escalates. Cases involving breached contracts can be extremely confusing, and more than likely, you will need professional legal guidance during the proceedings.