When to Sue for Breach of Contract
Contracts are necessary in various parts of life. As a business owner, you may enter into contracts on a regular basis. When you enter into a contract, you expect everyone to abide by the agreement. In many cases, they do, but sometimes they don’t, and this called a breach of contract.
Unfortunately, breaches of contract still occur all the time in Florida. The good news is that the law recognizes the power of a contract and provides remedies to those harmed by a breach. You can take legal action and obtain compensation for your damages. But when?
You should sue for breach of contract when a party fails to fulfill their obligations as outlined in a contract, and you suffered harm as a result.
To sue for breach of contract in Florida, there must be three elements in place:
- A valid contract between the parties
- A party materially breached that contract
- Damages incurred as a result of the breach
Therefore, a valid claim requires demonstrating the existence of a contract, the breach, damages, and a causal link between the breach and the damages.
However, to be valid, a contract should be clear, definite, and give the power of acceptance to the other party. A clear offer is one in which an ordinary person in the parties’ circumstances can understand its terms. It is definite if specific and genuine, not theoretical. The power of acceptance means that the contract must indicate how the other party can agree.
While many offers can either be verbal or written in Florida, some contracts, such as those for construction and real estate, must be in writing. As a general rule, it’s always a good idea to have a contract in writing because oral contracts can be easily disputed.
Was it a Breach?
So how do you know if the contract was breached or not? First, you need to understand what the contract required each party to do. You may have thought the contract required something, but you need to review the contract and be sure. If there was in fact a breach, was it a material breach or an immaterial breach? Here are the differences:
- Material breach. This is a major breach that effectively ruins the contract and leaves the non-breaching party in a bad position. Examples include not making payments and failing to deliver on goods and services at all. It could also include a violation of a non-disclosure clause.
- Immaterial breach. An immaterial breach is a minor deviance from the terms of the contract. Some examples would be a slight delay in receiving goods, services, or payment. Maybe poor weather caused a construction project to finish three days late.
Contact Us Today
A breached contract can be frustrating. Fortunately, if you have been wronged and there is a contract involved, you may be able to seek compensation for all your damages.
If a company has breached their contract, contact a Bradenton business litigation lawyer from Cahall Law Firm today. We can help you handle a potential, pending, or active business litigation matter. Let’s discuss your options. To schedule a consultation, call our office at (941) 281-2019 or fill out the online form.
Source:
floridabar.org/public/consumer/tip012/
