A breach of contract refers to a violation of the terms of an agreement made between two parties. When one side fails to live up to the terms of the contract or interferes with the ability of the other side to fulfill its obligations, a breach can arise. When a breach of contract happens, the party claiming the breach can take the case to court. It is important to understand what to expect in a breach of contract case and how it might affect you.
Was a Contract Formed?
In order to succeed with a breach of contract claim, the party claiming that a breach has occurred must first prove the existence of a contract between the two sides. The basic legal requirements of a valid contract include:
- A meeting of the minds between the parties regarding the essential terms of the agreement. Both parties must agree to the content of those terms and that they will abide by those terms.
- The contract is secured by consideration, or the exchange of some value between the parties. Usually, it is an exchange of money for goods or services. It can also be an exchange of a promise.
- Both parties had the legal capacity to enter the contract and did so knowingly, intelligently, and voluntarily.
To prove that a contract has been breached, the party claiming the breach must explain how the other side failed to live up to the terms of the agreement.
What Happens After Breach of a Contract?
If a breach of contract occurs, depending up on the nature of the contract, the contract could be declared null and void. Additionally, a party may be entitled to the award of damages or others remedies as outlined in the contract. In addition to taking the breach of contract to court, another option is to try and resolve the issues through alternative dispute resolutions (ADR). This can be done by utilization of the mediation or arbitration process. The terms of the agreement may specify an ADR.
Contact a Contract Attorney Today
If you would like assistance in drafting contracts, suspect that a breach of contract has occurred, or you have been named in a breach of contract lawsuit, contact the experienced employment contract specialists at Peterpaul Law, LLP today.