What happens if a partnership is not working between two parties? A breach of contract occurs when a member of one party does not fulfill the terms of a prior agreement. Breach of contract cases aim to make each party whole, a process called rescission. An experienced business lawyer can help if you suspect a breach of contract has taken place in your business partnership.
Determining whether a breach of contract occurred
Before deciding whether you need to seek legal action due to a breach of contract, it is crucial to determine if a violation occurred. Three elements must be in place for there to have been a breach of contract. First, there must be a valid and legally binding contract between both parties. Second, one party must have suffered material damages due to the breach, whether it was time or money. Common types of breaches include:
● Missed deadlines
● Incomplete or unfinished jobs
● Non-payment for services
● Failure to deliver a product or service
● Disagreement over contract terms
● Disputes between business partners or employees
● Failure to meet the terms of an agreement such as a lease, mortgage, or loan document
The legal process for a breach of contract
Both parties should work together to find a solution to fulfill the terms of the contract adequately. Before any legal action is taken, the complainant should send a demand letter to the offending party to get that person to fulfill the arrangement independently. If this happens, there is no need to seek further action. However, if the issue is not resolved, it is time to get an attorney involved. During a breach of contract case, a lawyer’s primary purpose is to step in and help both parties fulfill the contract as initially agreed. Lawyers then attempt to collect damages due to the breach and restore what was lost during that timeframe.
Material versus non-material breaches
Breaches of contract range in severity, and so do the consequences. The damages received depend on the type of breach that took place. Breaches of contract fall into two main categories: material and non-material cases.
Material breaches significantly impact the contract’s validity and may make the entire contract void. One example of a material breach would be if someone paid for an item to be delivered to a business but only received part of what was ordered. This type of breach puts the entire contract in jeopardy, and the complainant may sue for the total contract price.
Non-material breaches are less severe and are not as serious as material breaches. You may only sue for damages incurred by this breach of contract with this type of case. The point of a non-material breach is to fulfill the means of the original contract and compensate for damages incurred.
Breach of contract legal assistance in Winter Park, FL
The Boutty Law Firm, P.A. has experience negotiating business law and breach of contract cases. If you entered a partnership with another business owner who isn’t meeting their terms of the agreement, it might be time to obtain legal assistance from our experienced attorneys. Call our office at 407-622-1395 to schedule a consultation.