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Contracts are similar to promises made between two individuals in written form. If one party fails to honor a contract commitment, it is considered a breach of contract. This could lead you into trouble, such as making losses. Understanding your rights with the help of a civil litigation attorney Phoenix means knowing what can be done should this occur.
You may also be entitled to money for the inconvenience during a breach. Sometimes, a court could compel the other person to perform the agreed duties stipulated in the contract. This can be very helpful, especially when preparing for substantial contracts. This is because your rights assist you in handling a breach of contract and shield you. Get help from a civil litigation lawyer Phoenix to make the process easier.
What Constitutes A Breach Of Contract?
A contract breach occurs when one of the parties to a legal agreement fails to fulfill their part of the bargain. This can be as small as a late delivery or as big as not paying the right amount. The arrangement is a contract clearly stating what each individual is expected to perform. When one party fails to honor these commitments, it becomes a contractual breach. Understanding what constitutes a broken contract is crucial because it enables you to safeguard yourself when someone fails to honor the agreement.
8 Legal Remedies You May Be Able To Pursue With The Help Of A Civil Litigation Attorney Phoenix
Damages:
This is the most common method of remedying a breach of contract. Compensatory damages are monetary awards intended to help you recover what you lost due to the violation. The objective is to place you in the same position as you would have been if the contract terms were complied with. To sue for breach of contract, you must show that there was a contract, the other party failed to live up to the contract, and how much you were harmed. You will have the burden of providing evidence for your assertions. A civil litigation attorney Phoenix can help you to prove your case.
Specific Performance:
In some circumstances, you may go to court and seek an order for specific contract performance. This remedy requires the breaching party to perform its duties as the contract provides. Specific performance is usually ordered when getting the money back is not sufficient.
For instance, if you are hired to have a unique piece of art that was supposed to be delivered to you and the artist did not, you may wish to have the art rather than be paid for it. Specific performance is more likely to be awarded when the promise in the contract is exact and can hardly be replaced with anything else.
Termination:
If the breach is serious, in other words, if it touches the very essence of the contract, you may be entitled to the cancellation of the contract. Discharge frees each party from future obligations under the contract. You may also be able to recover damages for any losses sustained before the termination.
Deciding what constitutes a significant breach can be challenging and will always depend on the different provisions in the contract. You should seek legal advice from a civil litigation attorney Phoenix to determine your legal chances in this case.
Reformation:
If a party makes a mistake that the other party has made, the court can reform the contract. This implies that the written agreement does not represent what was agreed on. Reformation enables the court to rectify the written contract by making appropriate amendments to align with the parties’ intentions. For reformation to be practical, you must show that both parties were mistaken and wrong about the same thing regarding the contract.
Injunction:
An injunction is a court order restraining a party from engaging in a particular behavior or activity. In breach of contract scenarios, an injunction can restrain a party from further breaching the agreement. This can be useful where the continuation of the breach is likely to result in further harm being inflicted. For instance, if you agreed not to open a store within a given area of your business with a competitor and the latter breached the contract, you could use an injunction to restrain further competition.
Restitution:
Restitution is a remedy that aims to restore the parties to their positions before forming a contract. This may require the parties to refund any cash or goods traded under the agreement. Restitution is usually sought when monetary compensation is insufficient, and the breach was not your fault. The rationale of restitution is to negate the contract to the extent possible and restore the two parties to their pre-contract state.
Guaranty Clauses:
Some contracts include guarantee clauses. A guarantee clause is a separate agreement by a third party to ensure that the obligations of one of the contracting parties are fulfilled. If the primary party breaches the contract, you may be able to seek enforcement of the guaranty clause from the guarantor. A guaranty clause essentially creates a separate contract between you and the guarantor. If the primary party fails to meet their obligations, the guarantor becomes responsible for fulfilling them.
Alternative Dispute Resolution (ADR):
Before resorting to litigation, you and the other party may be able to resolve the breach of contract through alternative dispute resolution (ADR). ADR is a broad term encompassing various methods for resolving disputes outside of court, such as mediation and arbitration. This can be a faster and less expensive way to settle. ADR can be a more informal process than litigation and may be preferable for parties who want to avoid the time and expense of going to court.
Conclusion
Contracts are agreements that act like promises the law will enforce. They say what each person agrees to do. If someone breaks their promise, it’s a breach of contract. There are ways to fix the problem, like getting money back or ending the agreement. A lawyer can advise you on your best options. If you have a contract problem, contact Morey Law for help. Our civil litigation lawyer Phoenix can explain your rights and help you take action.