Looking for Breach of Contract Remedies?
A contract lawyer can help resolve a breach of contract and ensure your interests are protected.
A contract is a legal document that outlines the promises and expectations between two or more parties.
This document may be in place between a company and its employees, suppliers, and customers as a way to clearly define the agreement between the parties. In a perfect world, the parties involved will deliver the services or payment as outlined in the contract.
When this doesn’t happen, it’s called a breach of contract.
When this occurs, there are a few breach of contract remedies available. Today, we’re going to explore why hiring an experienced contract attorney may be the best option.
Let’s get started …
What Is A Breach of Contract?
Most agreements that become contracts are honored by both sides, and everyone benefits. But there are many situations that what happens when one of the parties defaults on the agreement?
First of all, just what is a breach of contract?
Depending on the situation, a breach occurs when one party fails to perform his contractual obligations on time, does not perform them in accordance with the terms of the contract, or does not perform them at all.
In legal terms, there are several kinds of breach of contract, and they are treated differently for the purposes of determining appropriate legal solution or remedy for the breach.
Types of Contract Breaches
Considered the most serious breach, a material breach is a failure to perform one’s duties, and it allows you to move forward with a breach of contract suit and seek damages because the contractor failed to hold up his end of the agreement.
Another type of breach, fundamental breach, occurs when the contract is obviously broken in its most fundamental terms. If you signed a lease for an apartment or condominium, and went to move in but found the apartment was rented to someone else, your landlord has committed a fundamental breach. You could bring a suit for damages and make him rent the apartment to you.
Let’s say you want someone to paint your house or build a great room, and you have agreed to a completion date. If the project is late in starting and it is clear it won’t be completed in time, you could claim an anticipatory breach and sue for monetary damages.
A lesser breach is called a minor breach. This is a partial breach in which the job you wanted to be done gets completed but there are a few errors. Although you can’t sue for performance (the job got done), you may be able to sue for monetary damages to get the corrections made.
Regardless of the type of breach, you would have to show that a contract existed, it was broken, you lost money, and the contractor was responsible.
Damages and Remedies
There are different remedies and forms of compensation possible for breach of contract. Here are a few.
Compensatory damages can be awarded to reimburse your costs and compensate you for any losses. Consequential and incidental damages can be awarded if the parties were aware of potential losses in a breach when the contract was agreed to.
Liquidated damages are specified in the contract as agreed damages. Sometimes, in cases of offensive behavior by the contractor, punitive damages can be awarded as retribution. This is rare in breach of contract cases, but it is possible.
If authorized by statutes or expressly included in the contract, attorney’s fees may also be recoverable.
There can be other forms of satisfaction, common remedies, that can also be applied in cases of breach of contract.
A specific performance remedy is a court order for each person involved in the contract to follow through with the initial agreement.
A rescission remedy essentially cancels the contract, allowing any money to be returned, and the matter treated as if it never happened.
A reformation allows the contract to be rewritten to better serve the actual intentions of the original contract. It is a legal “do-over.”
Before considering legal action, you should read your contract carefully. It may include language that limits legal actions or waves contract remedies and can complicate any
Breach of Contract Remedies
Your contractor or landlord or another contracted individual has appeared to break the contract you signed. What should you do? You want to have the contract enforced and, if not, you want to recover any financial damages as a result of the breach.
There are different options for pursuing legal action in the case of breach of contract. In addition to filing a lawsuit, there are out-of-court actions called alternative dispute resolutions that can be tried first.
These involve mediation or arbitration and can eliminate the need for court proceedings or can possibly simplify or speed the process. Another approach to consider is small claims court, usually limited to cases where the amount in dispute is below a defined figure (like $1,500 up to $15,000) depending on the state involved.
In preparing for any kind of legal action, there are certain steps you should take to have the best chance for a positive outcome. The first step is to determine whether you have, in fact, a valid contract. It is usually a written document, but it can be an oral one. The problem is that oral contracts may be difficult to prove.
Some contracts do need to be written. According to the Statute of Frauds, these contracts include marriages, the sale of real estate, transfer of property after a death, goods valued at over $500, and agreements that will last longer than one year.
If you have a valid contract, you have to determine if the contract was broken. And you have to determine if you are still within the statute of limitations, the time limit established for filing a lawsuit. These limits vary according to circumstances of your case and whether you are filing in state or federal court.
An attorney can advise you on how to proceed with your case. A breach of contract is considered a civil suit, and the deadline is usually between two and six years. The time begins when you first realize that your contract has been breached.
The next thing to consider is whether there has been any material damages, any lost money because this would be necessary before you would have a valid complaint. If you lost some kind of benefit instead of money, that could still count because of its monetary value.
If, for example, you lost your job, this would be equivalent to a monetary loss. Any similar negative effect would have a monetary value that you could use. Make sure you keep track of all damages and keep records of any losses.
An attorney can advise you on what court to choose. This will depend on the county and state residence of each party and the contract itself. You should also learn the state laws for serving the other person notice that you are filing a lawsuit. This is called serving, and it gives the other person a chance to respond before facing legal proceedings.
There are other steps involved, like obtaining a complaint form, preparing it, making copies, and filing it with the proper court. A hearing will be scheduled, and you must attend it.
When you believe you have a valid contract that has been materially breached, it’s a good idea to hire an experienced attorney who can represent you throughout the sometimes-complicated process of legal redress.
Find an experienced contract law attorney in near you and receive up to 30 minutes of free consultation. Call 818-340-4529
Are you in search for a certified attorney to represent you?
Let us help you find one today!
