What Does a Breach of Contract Attorney Do?
A breach of contract attorney has a specific role. When you enter into a contract, whether written or oral, and the other party fails to live up to their end of the agreement, you have the option to sue them for the breach. If you do not have representation, the burden is on you to prove that they broke the contract, there was a legal remedy requested of some type for the breach, and that the breached brought some type of financial hardship.
Transparency is important. A breach of contract attorney will review questions, concerns , and complaints that a client has with the contract and the other party. They then investigate the particulars of the situation including calling up the other party and getting their side of the story to see if there are any holes in what they have to say. This takes up a lot of time. In a high-stress situation, what you need is someone who is going to clarify things for you and determine if you have a claim or question of breach.
Their responsibilities include educating and advising the dealership so that they have all relevant information that they need to make an informed decision. They also have the right to begin collecting facts on the case, interviewing witnesses, getting financial records, determining who is at fault, and reaching out to law enforcement if fraud is involved.
When to Seek Help From a Breach of Contract Attorney
When it comes to contractual agreements, both sides are expected to hold up their end of the bargain. If your business partner fails to do so, you will need to get experienced legal help from a breach of contract attorney to see whether you have grounds for an action and how best to proceed. While some breaches of contract are not significant enough to warrant a legal response, other signs indicate that contacting a breach of contract lawyer is the best plan of action: The agreement of the terms of a contract is one of the most essential functions of a business entering into an agreement with someone else. But even if the terms are agreed to, and everything seems fine, a breach can still take place in any number of ways, such as: If either side fails to meet the terms of the agreement, it can be a major problem for your business, impacting your finances, your reputation and even your future dealings with that individual or entity. A breach of contract attorney will help you assess the situation to determine whether the breach has occurred and how you should respond.
Different Types of Breaches of Contract
A breach of contract occurs when one party does not perform their contractual obligation. There are a variety of circumstances in which a party could breach a contract, and the law distinguishes between breaches when determining the actions available to the non-breaching party.
Material Breach
When a serious violation or substantial failure to perform occurs, this is known as a material breach. If the action is significant enough, it will excuse the party that was harmed from performing their part of the contract. In other words, they no longer need to do what they originally agreed to because of the actions of the other party. Even if full compensation cannot remedy a minor breach, this will not excuse the non-breaching party from having to perform their part of the contract.
Minor Breach
If the failure to perform was only slightly harmful, this is known as a minor breach or partial breach. For minor breaches, the party that was not harmed must still perform their part of the contract, even though they will have the right to monetary damages.
Anticipatory Breach
When the performance of a contract is in some way indicated to not be completed, this is known as an anticipatory breach. This could be shown through one party returning consideration (compensation) before the agreed date, or communicating that they will not fulfill their end of the contract. When an anticipatory breach and a material breach are so close together in timing, the non-breaching party may treat them as one and rescind the contract. However, if a minor breach occurs prior to the anticipatory breach, the non-breaching party must perform. Identifying the type of breach that has occurred is very important when determining the strategy for a breach of contract case.
Remedies for Breach of Contract Issues
The following are legal remedies that may be available to a plaintiff from a breach of contract:
Compensatory Damages
Usually, the nonbreaching party is entitled to compensatory damages for the loss of the benefit of the bargain. This is done by putting the nonbreaching party in as good a position as he or she would have been in had the defendant performed as promised.
Consequential Damages
Consequential damages are foreseeable damages that flow from the breach but are not a direct result of the breach itself. The injured party must make the other party aware of these consequences at the time the contract was formed in order to recover for these damages. For example, if an artist is to perform at your company’s annual party, but never shows up, and you also lose a quarter of your clients due to the fact that your main entertainment fell through, you may be able to recover consequential damages to cover your losses to the remaining quarter of your clients.
Punitive Damages
The usual remedy in contracts is compensatory damages, but courts may allow punitive damages if the breaching party intentionally broke the contract and therefore committed a civil wrong against the other party to the contract . When the breach is done with evil motive or with reckless indifference, punitive damages may be awarded.
Specific Performance
Specific performance is a remedy available when the subject matter of a contract is unique. Courts order specific performance when a party obtains the real property in question. If a piece of land is the subject matter of a contract and the individual who purchased the land breaches a purchase agreement, the court may grant specific performance, allowing the seller to return to the property and take ownership. Specific performance may also be granted in the sale of goods if the item is unique or one of a kind. Specific performance requires the breaching party to perform their end of the bargain.
Rescission
Rescission involves the cancellation of the contract and the return of each party to the other with what they gave. This remedy is based on the rescission of the contract and not the breach. Rescission is only available when there is a mistake, misrepresentation, duress, undue influence, or a contract is voidable for some other reason. Courts may also order this remedy when a party materially breached or fraudulently entered into a contract.
How to Hire the Right Breach of Contract Attorney
When it comes to choosing the right attorney for your breach of contract case, there are several factors to consider. First and foremost, you should evaluate the experience of the attorney and whether they have a track record in successfully handling breach of contract cases similar to yours. Consider if they have had any academic accolades in the field as well as additional training or certifications. Find out how many times they have taken cases to trial and how many have ended up with favorable outcomes for the client.
It is also important to find out the strength of their legal network. Ask if they are members of professional associations that can help them gather expert witnesses on your behalf. Consulting lawyers from other law firms can be useful for a case if they have negative evidence against your opponent.
Another factor to consider is how the attorney approaches their legal practice. Do they favor mediation or arbitration? Do they avoid jury trials or prefer to try every case? An attorney that favors dispute resolution on the front-end is often an asset for your business. Many issues can be settled without dragging your business through a public court case that can damage your reputation. There are fewer fees and less stress involved in these processes than with litigation. However, each situation is unique and you need the strong legal representation that understands the merits of dispute resolution and when you need to resort to the courts.
You should also take into account the size of the firm you will be working with, the reputation of the firm and their fees. The larger the firm, the more likely you will have multiple people working on your case. This can sometimes result in frustrating conversations with junior lawyers who have no clue what is going on with your case. On the other hand, small firms are often able to give you more personal attention than their larger counterparts, resulting in a stronger relationship with the firm. They are often willing and able to communicate better about your case as they have less cases assigned to their firm.
Examples of Breach of Contract Cases
Consider the case of a small technology firm that provided a software solution for a government contractor. Due to performance concerns with the product, the contractor withheld payment for several months while the tech firm and its attorneys worked to negotiate a revised licensing agreement. The attorney representing the tech firm used negotiation tactics to successfully achieve a revised license agreement and the release of all payment within two weeks. Had the corporation attempted to sort through the contract terms on your own, it is quite possible that a less favorable resolution would have resulted. Another case study to consider is from a large manufacturing company who was dealing with a supplier breach. Without sufficient proof regarding the breach , the extensive in-house reviews and negotiations with counsel took over a year to bring to an end. With a focus on breach of contract cases that deal with specific performance, even a recent case involving a motion to intervene, attorneys have been able to use expert advice and guidance to help clients end disputes quickly. In the end, what these case studies show is that there is an opportunity in every breach of contract case to explore legal options ahead of court. By seeking the specific advice of a breach of contract attorney, options can be explored for amicable resolution that may benefit your business.