- November 17, 2018
- May Law LLP
- 0 Comments
In the most ideal world, agreements would be made and both parties would be happy with their choice. Ideally, no disputes would come up and each party would benefit from the contract to the fullest extent. If you are in need of legal services regarding an agreement gone wrong, you can contact a breach of contract attorney for help. They understand that in the reality, business delays occur, financial problems arise and other events can prevent a contract from being carried out as promised.
Below we answer some common questions about what a breach of contract is, and what happens if an agreement falls through. For additional questions, please contact a law firm.
What is the Definition of a Breach of Contract?
When making a business contract, there are specific obligations both parties must fulfill. In legal terms, any party that fails to uphold their end of the agreement, is committing a breach of contract. A breach can also occur if a party fails to fulfill a duty within a time frame listed in the contract.
What Happens After a Breach is Committed?
If there is an alleged breach of contract, one of the parties can attempt to enforce the terms, or seek compensation for any loss of finances. If informal attempts at solving the problem do not work, then a dispute can be handled through a lawsuit. If both parties are able to solve the issues through mediation, it can prevent the stress and expenses of a lawsuit. Out of court attempts at fixing disagreements over a contract, can be referred to as alternative dispute resolution.
Damages for a Breach of Contract
A breach of contract can be remedied through awarding payment of damages. There are four different types of damages, and are briefly defined as the following:
- Punitive Damages – intended to hold the breaching party accountable for their actions through having to make payments to the non-breaching party.
- Compensatory Damages – aims to put the non-breaching party in a position they normally would have been, if the breaching party had fulfilled their agreements.
- Nominal Damages – if there was no financial loss due to the breach of contract, the court may issue a small award of a few dollars to the non-breaching party.
- Liquidated Damages – an amount both parties agreed upon in the contract that the non-breaching party can collect in the event their end is not upheld.
We do not recommend handling a breach of contract alone. Due to the complexity of contracts, most cases can benefit from representation of a breach of contract attorney who can explain how a business contracts lawyer in Sacramento, CA may help.
Thank you to our friends and contributors at the Yee Law Group for their insight into business law and breach of contracts.