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Understanding breach of contract lawsuits

by | Jul 24, 2020 | Business Law

There would be no need for business litigation professionals and contract law attorneys if we lived in a perfect world. In that world, all the parties involved in a contract hold up their end and everyone benefits.

Sadly, we don’t live in that perfect world and there are times where unexpected issues arise or people become dishonest in the pursuit of personal gain. In the event of a breach of contract, there is often no option other than taking some sort of legal recourse.

What is breach of contract?

One of the ugliest aspects of business law is breach of contract lawsuits. These claims occur when at least one party of the contract does not perform the terms they agreed to in the legally binding document

Suing for breach of contract is usually an option later in the process. After all, neither party wants to get involved in a lawsuit that can take time and money. If informal attempts at some sort of reconciliation don’t produce any results, however, lawsuits are the common next step.

What to do with breach of contract

While independent mediators and small claims courts may be able to help in certain cases, especially when dollar amounts are not exceptionally high, breaches of contract often involve lawyers representing both sides in front of a judge. If a breach of contract is proven, the victim of the breach is entitled to relief. That relief typically comes in the form of damages, specific performance or cancellation and restitution. Within the heading of damages, clients may seek compensatory, nominal, punitive or liquidated damages.

What it all means

If you’ve been the victim of a breach of contract, consider retaining an attorney who is familiar with contract law. A lawsuit could cover a variety of topics from certain tasks that are agreed upon to non-compete agreements.

Your business attorney may review the contract extensively and ask for documented evidence that proves a failure to meet the terms. At that point, your lawyer can advise you or begin working to get you the relief you are entitled to.