When Do You Need a Lawyer for Breach of Contract Disputes?
A breach of contract dispute is not something any of us want to think about. When you enter into an agreement with another business person or entity, there’s an expectation that both parties will perform their duties or provide the goods and services outlined in the contract. Ideally, both sides benefit from the business contract and are pleased with the outcome. Unfortunately, people and companies fail to follow through with their side of a contract regularly due to financial issues, delays, and unexpected problems.
If someone you made a contractual agreement with breached the terms of the contract (whether on purpose or accidental), you may need to take legal action to recover monies paid to the other party and prevent further damages. At Johnstone Adams, our business attorneys know how to help your business navigate the torrential waters of contract disputes. We will fight on your behalf through litigation to safeguard your business if necessary.
What Is a Breach of Contract?
A business contract clearly states the obligations that both parties must fulfill when the agreement is signed. When one party fails to hold up their end of the deal, they are in breach of the contract, which may involve failure to deliver goods or services on time or in accordance with the contract terms. They may neglect to perform their contractual duties altogether. Legally, this breach of contract may be a material or immaterial breach, depending on the situation.
An example of a breach of contract would be a businessperson who orders “X” amount of goods from another business, such as meat for a restaurant for delivery on a specified Monday. If the goods are delivered on Tuesday, the breach of contract is immaterial as the business is unlikely to suffer monetary damages due to the violation. However, if the restaurant owner was catering for a large event on Monday evening and outlined the urgency in the contract, the breach is considered material because it significantly impacted the restaurant owner’s business. They can pursue legal action against the other party to recover damages such as the cost of the meat and additional monies.
The solution to the breach of contract dispute may include damages, cancellation and restitution, or in rare cases, specific performance. Damages may involve compensatory damages that reimburse your losses in addition to punitive damages meant to deter the wrongful party from such actions in the future. Nominal damages may be awarded if the breach of contract caused no monetary losses. Sometimes, the agreement will outline the steps to take should the contract be breached, called liquidated damages.
When to Sue for Breach of Contract?
While some situations may be reasonably handled between the two parties in the agreement, you may find yourself dealing with a business person or entity who is aggressive in their tactics or who neglects to communicate with you at all, leaving unanswered phone calls and emails.
You should consult with an attorney about a breach of contract that deals with multiple businesses and monetary losses due to delayed delivery, missing inventory, or other circumstances that do not have a straightforward solution that both parties agree will suffice.
Breach of contract disputes can be complicated despite the clear nature of the agreement. Our business attorneys at Johnstone Adams can help you file and pursue a lawsuit against the other party to find a legal remedy for the situation and any damages your business incurred in the process.
Our expert lawyers in Mobile, Alabama, know how to represent your best interests and pursue a breach of contract lawsuit against the party that failed to honor their contractual obligations.
If you’re struggling with a breach of contract dispute, contact Johnstone Adams today by calling (844) 682-7682 or by using our convenient online form .
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