Guide to Breach of Contract Cases: Your Legal Options
Contracts are the backbone of business relationships, ensuring that both parties meet their obligations. A contract means a legally binding agreement between two parties (or more), and it can be either a written or a verbal agreement. For a valid contract to exist, the parties involved must agree to specific terms, and both must understand their legal rights and obligations under the relevant laws. But when one side fails to hold up their end of the bargain, the repercussions can be costly. A breach of contract can disrupt business operations, lead to financial losses, and damage a company’s reputation. Common examples of contract breaches include missed deadlines, substandard performance, or a party’s failure to deliver goods or services as promised. Material breaches, bad faith, and good faith are important concepts in determining the seriousness of a party’s breach and the available remedies. Business agreements involving multiple owners can lead to disputes, especially when business operations are affected by a party’s failure or alleged breach.
Once you’ve identified the breach, you have several legal options to pursue compensation and ensure justice, such as: breach of contract claims, which are a type of legal action that may require courts to resolve the dispute. Contract claims can arise from both written and verbal agreements, as long as a valid contract exists. Potential remedies for contract breach depend on the facts and laws governing the agreement, and may include damages, specific performance, or contract termination.
Hiring an experienced breach of contract attorney is crucial to protect your legal rights and guide your legal position throughout the process. An attorney can help you navigate contract litigation or breach of contract litigation, whether through negotiation, mediation, or court proceedings. Some attorneys offer services on a contingency fee basis, so clients only pay if they win. Our firm has represented countless clients in breach of contract litigation and contract litigation, helping them overcome legal challenges and achieve favorable outcomes.
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, which often involves clarifying your legal position regarding the other party’s breach. 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; however, if neither mediation nor arbitration resolves the dispute, the parties may need to pursue legal action in the courts.
Filing a Lawsuit
If direct negotiation fails, You may need to take the matter to court by filing a breach of contract claim or other contract claims. A breach of contract lawsuit seeks to enforce the contract and recover damages caused by the party’s breach. The plaintiff must prove that the party breached the contract and establish the facts of the party’s breach or alleged 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 contract breach occurs when one party fails to meet their contractual obligations in a valid contract. Contract breaches can happen in any legally binding agreement between two parties or more, whether the contract is written or a verbal agreement. A contract means an agreement between the parties involved, outlining specific duties and expectations. Common examples of contract breaches include a party’s failure to deliver goods, substandard performance, or delayed performance. Material breaches, as well as breaches committed in bad faith or good faith, can have different legal consequences. In a business agreement, an alleged breach by the other party can lead to legal disputes.
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, our St. Simons Island breach of contract lawyers 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.
