To make an agreement legally binding, whether purchasing residential or commercial property, starting a new business or business venture, or selling or buying a product or service, a contract is executed by the involved parties. Typically, contracts are written, but they can also be verbal or oral.
Both parties are required to follow the rules of the contract. If one party fails to do so, a breach of contract occurs. Depending on the case, this can result in a significant financial loss, as well as other problems. As an example of a breached contract, consider a dog breeder who guarantees first pick of the litter in lieu of payment to the person who provided the male dog for stud service. Once the puppies are born, the breeder allows someone else to have first pick, thereby breaching the contract.
A legally-binding contract can be breached in several ways. This includes failing to pay, declaring that there was no intention of performing the responsibilities as outlined in the contract, failing to provide notification, and preventing or blocking the other party from performing as indicated by the contract.
If you are in contract with another person, and that individual breaches it, try to work things out. Often, advising the other party that a breach occurred and stressing concern over the situation is enough to clear up the situation. If your attempt for resolution fails, you may need to seek professional legal assistance. Usually, an attorney can get both parties to enter into an agreement deemed mutually beneficial, but other times, more aggressive action is required.
Your attorney will first try to find a legal resolution outside of the courtroom, again in the form of an agreement. In addition, the attorney will help in mitigating current and potential damages. During negotiations, the goal is to remind the party that breached the contract of his or her obligations and to establish a new direction for reaching your objectives. Both mediation and arbitration are solutions commonly used in these agreements.
If the issue or dispute pertaining to the breach can be mediated and arbitrated satisfactorily, great. Unfortunately, there are times when these efforts fail. When that happens, a lawsuit is the next course of action. The attorney that you hire will file the case and pursue every appropriate litigation option available in an effort to protect your rights.
By hiring a reputable attorney who is well-versed in this area of the law, the chance of achieving success improves. Throughout the process, whether this involves negotiations or a lawsuit, the attorney will keep you advised of potential risks and benefits.
Although resolution is achieved in different ways for a breach of contract case, the courts usually prefer a monetary solution. In rare occasions, an attorney will use “specific performance” as an argument to force the other party to uphold his or her end of the contract. Because this type of case is extremely complex, it requires stellar attorney services. Regardless of the type of breach of contract or the direction taken for resolution, you want a highly-respected attorney in your corner.