Finding that someone you entered into a business deal or contract with has broken the agreement can be a bit frustrating. For many, there can be a lot riding on a business deal. With a contract to back the agreement, it may be much easier to address the problem, enforce the contract and prove the existence of the contract should you need to take legal action. Being able to identify when a contract has been broken may be vital in ensuring that you take proper action. Depending on the severity of the situation at hand, you may require the help of an attorney when faced with a breach of contract.
Breach of Contract
A breach of contract may occur when one party does not uphold the terms that were originally put in place within the contract. There are a number of ways in which a breach may occur. Types of contract breaches may include:
- Minor Breach: is when someone only partially fulfills their obligation or eventually upholds the terms of their contract.
- Material Breach: this is when the obligated party provides materials that are completely different than the original contractual agreement outlined. In cases such as this, the party who suffered from a total breach may seek damages in court.
- Anticipatory Breach: is when someone gives notice to the other party that they will not be able to fulfill their contractual obligations.
- Actual Breach: is when someone does not uphold their end of the deal. They may not fulfill the contract at all or only partially fulfill their obligation.
Based on the type of breach that has been identified, you can make a determination regarding the best court of action to take. In some cases, you may find it helpful to consult with a contracts attorney.
If a Breach has Occurred
If you entered into a contractual agreement with a business partner who did not uphold their end of the deal, you will want to sort out the best course of action. A breach of contract can have a significant impact on a person’s business and overall livelihood. If you have identified that a breach has taken place, it may be helpful to take the following steps in order to remedy the situation:
- Contact the person who is in breach of the contract to determine if there is a possible remedy to upholding their end of the deal.
- With the help of your attorney, you may be able to enforce the contract they have broken.
- You may be able to seek monetary damages from the other party for direct or indirect losses that resulted from the contractual breach.
- In some contracts, those who are non compliant may be required to pay a specific amount of money to the party who is not in breach. This is often referred to as a liquidation breach.
There will be a lot riding on the line if you discover someone you are working with has not upheld their end of the deal. A business contracts lawyer Sacramento, CA trusts may be a vital element to helping reach a resolution in a timely manner.
You will not be able to force someone to uphold their end of the deal. However, you may be able to work with an attorney when it comes to taking action. They may be able to help enforce the contract and make attempts to salvage the deal you had originally agreed upon. If that is unable to work, or the other party is unresponsive, taking legal action may be a necessary next step.
Thank you to our friends and contributors at Yee Law Group for their insight into business law and contracts.