Guide to Breach of Contract Cases: Your Legal Options
Contracts are the backbone of business relationships, ensuring that both parties meet their obligations. But when one side fails to hold up their end of the bargain, the repercussions can be costly. A breach of contract can disrupt operations, lead to financial losses, and damage a company’s reputation.
Once you’ve identified the breach, you have several legal options to pursue compensation and ensure justice, such as:
Negotiation
In many cases, the first step is negotiating with the other party. You may be able to resolve the breach without going to court by agreeing to new terms, deadlines, or compensation. This option is less expensive and faster than litigation.
Mediation or Arbitration
If direct negotiation doesn’t work, mediation or arbitration may be appropriate. These alternative dispute resolution methods involve a neutral third party who helps facilitate an agreement. Arbitration is typically binding, while mediation is not, giving both parties more flexibility.
Filing a Lawsuit
If negotiations fail, you may need to take the matter to court. A breach of contract lawsuit seeks to enforce the contract and recover damages caused by the breach. The goal is to put you in the position you would have been in if the breach had not occurred. This might include compensatory damages, or even punitive damages if the breach was willful or malicious.
What Constitutes a Breach of Contract?
A breach of contract occurs when one party fails to meet their contractual obligations. This can happen in a variety of ways, including:
- Failure to Perform: When a party doesn’t complete the duties agreed upon in the contract.
- Delayed Performance: When obligations are met but not within the agreed-upon timeframe.
- Substandard Performance: When the work or product provided does not meet the contractual standards.
- Anticipatory Breach: When one party indicates they won’t fulfill their contractual obligations before the performance is due.
Understanding the type of breach that has occurred is the first step in determining your legal course of action.
Damages You Can Recover
In a breach of contract case, the damages you may recover depend on the nature of the breach and the harm caused. Common types of damages include:
- Compensatory Damages: These cover the financial losses directly caused by the breach, such as lost revenue or additional expenses.
- Consequential Damages: If the breach caused indirect losses (e.g., losing a business opportunity), you might be able to recover these damages as well.
- Liquidated Damages: If the contract specifies a set amount to be paid in the event of a breach, these are known as liquidated damages.
- Specific Performance: In some cases, you may ask the court to compel the breaching party to fulfill their contractual obligations rather than paying damages.
Taylor Odachowski Schmidt & Crossland, LLC can help you enforce your contracts and recover what’s rightfully yours.
Protect Your Business with Taylor Odachowski Schmidt & Crossland, LLC
Facing a breach of contract can jeopardize everything you’ve worked hard to build, but you don’t have to navigate this legal challenge alone. At Taylor Odachowski Schmidt & Crossland, LLC, we have decades of experience helping businesses like yours hold parties accountable when they fail to meet their obligations. We offer personalized attention and a thorough understanding of contract law, guiding you through negotiation, mediation, or litigation, depending on your needs.
Whether you’re looking to recover financial losses or ensure the other party fulfills their obligations, our team is here to assist. Contact us today at (912) 634-0955 or through our contact form to discuss your options and move forward with confidence.
