Contract disputes happen regularly, regardless of what type of contract the parties agreed to. The performance of a contract is essential for businesses to continue their day-to-day work. All business owners seek to run a smooth business, but sometimes problems arise with one side’s obligations under the terms of the contract. When a party fails to fulfill their obligations under a contract, this is referred to as a “breach of contract.” When the dispute is not resolved between the different sides, one party may want to file a lawsuit to enforce the contract and recover any damages caused.
There are several types of breaches of contract: anticipatory breach, minor breach, material breach, and fundamental breach. An anticipatory breach of contract is when one party makes it known to the other party that they will not perform their duties under the contract in the future, thus allowing the other party to sue. A minor breach of contract takes place when the other party performs their obligations under the contract but the performance is less than satisfactory. A material breach of contract arises when there is a breach of contract that causes damages to a party for which they can demand compensation for. A fundamental breach of contract exists when a fundamental term of the contract has been violated and damages may be awarded to one side.
In order to have the courts consider a breach of contract, first there must be evidence that the contract was valid. A contract is valid when all of the following conditions are in place: there is an offer, sometimes there is a counter-offer, there is an acceptance of the offer, the contract does not contain parts that violate the law, there is mutual assent between the two sides, and each side receives something of value. There must also be legal grounds to sue under the state law and the timing must be legal in regards to the state’s statute of limitations which forbid a wronged party from taking legal action on a contract after a certain number of years has passed.
The next step is for the plaintiff to prove to the court that they performed their obligations under the contract. If both sides failed to perform under the contract, it would be very difficult for either side to win a case for breach of contract. Subsequently, the plaintiff must then prove with evidence why, how, and when the defendant did not perform their obligations under the contract and provide the proper evidence that shows damages were incurred to the plaintiff due to the defendant’s breach of contract.
However, it is important to note that the courts do not automatically grant an award to all breaches of contract. A good contract litigator can work to win a judgement and provide some relief to the wronged party.
At Raheen Law Group, we can assist clients with contract litigation. Whether it is enforcing the terms of a current contract, pursuing legal action due to a breached contract, or defending clients from legal action due to an alleged breach of contract, Raheen Law Group has you covered.
If you need help enforcing a contract or defending your business from an alleged breach of contract, contact us for a consultation.