If you're facing allegations for a breach of contract, it's natural to feel overwhelmed and uncertain about your legal rights and options. These allegations can affect your business, employment, or personal affairs. Fortunately, you may have more options than you think.
You don't have to be a law expert to better understand your case. Remember these five key factors when navigating your breach of contract lawsuit.
Before we dive in, let's first understand what we're dealing with. If you are being sued over breach of contract, you are being accused of failing to fulfill your obligations under a legally binding agreement. These allegations can be related to failing to deliver goods or services, missing payment deadlines, or violating the terms and conditions outlined in a contract.
Material Breach: This type of breach occurs when one party's failure to fulfil a contractual obligation is significant enough to deprive the other party of the benefit they expected from the contract. In other words, if you were hired to remodel a bathroom and installed everything except the toilet, that would be considered a material breach.
Minor breach/partial breach: In this case, the breach involves failing to fulfil some aspects of the contract while still fulfilling its overall purpose. For example, let's say you got hired to do a custom paint job on a car, but the final product looked nothing like the one advertised in your commercials. That can be considered a minor breach.
Anticipatory breach: An anticipatory breach occurs when one party demonstrates, whether through verbal communication or behavior, an intention not to honor their contractual duties in the forthcoming period. For instance, suppose Company A holds a 3-year contract with Company B for the supply of goods. At the two-year mark, Company A fails to meet the delivery deadline for the goods and subsequently lets Company B know via a letter that it will no longer be able to fulfill any further deliveries moving forward.
If a letter or summons showed up at your door informing you that you're facing allegations about a breach of contract, it's easy to panic with the sudden change in your life and the possible consequences that could follow. Strong legal representation can make a lot of those worries fade away. A knowledgeable lawyer will protect your rights, assess the merits of your case, negotiate with the opposing party, and advocate for the best possible outcome on your behalf. Many people and small business owners end up paying out much more than their fair share in breach of contract cases.
The best defense a lawyer can give you depends on the details of your case. Common defenses will include asserting that no breach occurred, arguing that the other party breached the contract first, or claiming that there are discrepancies within the contract that didn't allow you to fully complete the job. Consulting with an experienced civil litigation attorney is always recommended as a good first step for answering breach of contracts and other civil lawsuits.
