Breach of Contract Lawyers
Contracts can exist in various forms, such as a written contract, an oral contract, or even an implied contract. In general, a contract is a legal obligation for each party to the contract to fulfill the terms of the agreement. Contracts can be beneficial to give the parties a clear understanding of their obligations and rights. However, disputes can arise as to the terms of the agreement and the obligations of the parties.
When one party breaches, or fails to perform the terms of a contract, large amounts of money and the financial health of an organization may be at stake. What ensues is often highly contentious litigation over the terms of the contract, each party’s rights and duties, and the remedies available.
In some cases, parties breach contracts without intending to do so, while in other situations parties intentionally decide not to fulfill the terms of a contract. Sometimes a breach of contract claims arises when businesses go bankrupt and cannot keep the promises they made in a contract, while another breach of contract claims might arise, for instance, when a commercial tenant has a dispute with the commercial landlord about how leased property can be used.
Types of Breach of Contract:
- Material Breach
A material breach occurs when a party fails to fully comply with their obligations under the agreement. - Anticipatory Breach
An anticipatory breach occurs when one party anticipates the other party will not or is unable to fully perform their contractual obligations. - Partial Breach
A partial breach occurs when a party performs some terms but fails to completely perform all their obligations.
To maintain a breach of contract claim, a party must establish each of the following:
- The existence of a valid and enforceable contract
- Performance by the party bringing the claim or reasonable efforts to fulfill their contractual obligations
- The other party’s failure to perform as required under the agreement
- Damages and losses resulting from the breach, which includes all losses that are the natural and probable consequence of the breach of the contract.
A party may be entitled to ‘specific performance’ of the contract, which is a remedy directing the party to perform as required by the terms of the contract. Specific performance is generally allowed when monetary damages are insufficient to remedy the loss, such as situations involving the sale of a unique item, such as a piece of art or rare collector’s item. Rescission of the contract is the remedy that essentially puts the non-breaching party back in the position he/she/it was in prior to the breach, and the contract is considered void or cancelled. It should be noted that punitive damages are generally not allowed for a breach of contract.
There are various ways the parties can resolve issues relating to contract disputes. If you need assistance with your breach of contract disputes, contact the Attorneys for Freedom or call our Arizona office at 480-755-7110 and an experienced breach of contract lawyer can assist with your case.
