Ideally, when business contracts are entered into, both parties expect to benefit from the partnership and no disputes are expected to occur. However, that’s not the case in most scenarios. When doing business, delays happen, and financial issues arise.
Additionally, other unexpected issues can hinder the initial agreements or plans of the contract from being carried out. This, in most cases, causes the parties to sue each other.
It’s good when businesses practice the rules and guidelines stipulated in any written contract. It puts in perspective what needs to be done and gives clarity about any expectations.
But what happens when a person or business doesn’t hold up to its end of the bargain? If it’s true that one party hasn’t entirely performed, then you might be entitled to compensation for the breach of contract!
But before getting into the hustle, you must ensure that you have a valid and binding contract or that the other party has justification. This is why it’s essential to work with certified and legit legal services like us.
At Pearl Lemon Legal, we thoroughly analyse and scrutinise the validity of your employment contract and prepare for the other party’s defence before taking any legal action.
Do you want to know more about what we can do? Contact us to set up a consultation with our experts.
Essentially, a breach breaks the terms and conditions set out in a legally binding contract. When a party fails to perform their duties per the contract, the grieved party can sue for damages, and in most cases, the contract is terminated.
Common examples of a breach of contract include late payments for work carried out and failure to deliver a promised good or service. Furthermore, a breach of contract can be classified as either an “immaterial or material.” to aid in finding a suitable legal remedy for the breach.
Usually, when a breach of contract occurs, one or both parties will try to get the contract enforced on the original terms or can try to get compensation for any damages caused or financial losses.
When a breach of contract happens and all attempts at resolving the matter fail, the next easy step is filing a lawsuit. However, going to court and filing lawsuits for breach of contract are not the only solutions for people and businesses involved in these disputes.
The parties involved can choose to have a mediator or agree to binding arbitration of a contract dispute. These alternative dispute remedies can act as alternatives to business litigation.
Whatever route you decide to take, our lawyers at Pearl Lemon Legal are here to give you legal advice and are readily available to walk with you every step of the way.
Retribution for a breach of contract is usually monetary. In other cases, it comes in the form of injunctions or specific performance if the financial compensation isn’t enough. Also, lengthy contract issues can be avoided by simply writing a “Before Action” breach of contract letter.
You can also:
Contact us if you want to learn more about how contracts work and how you can protect yourself or your business from breaches. We will walk you through what you need and answer all the questions you might have.
Under the law, all individuals and businesses are entitled to “remedy” when there has been a breach of contract. The primary remedies for a breach of contract are:
A non-breaching party can rescind the agreement as a form of dispute resolution. The non-breaching party can simply decline to execute their end of the deal rather than pursue monetary damages. Rescission places the parties in the same situation they would have been in if the contract had never been entered into.
The breach must be material, nevertheless, to support termination. That implies that it must contradict the fundamental terms of the contract.
You would be right in cancelling the agreement and declining to render any services because payment is the basis of the contract.
Damages can be paid in one form or another. It is one of the most common remedies for a breach of contract. Damages compensated to the grieved party are calculated based on the losses you have suffered due to the breach of contract. There are many types of damage, including:
Quantum Meruit translates to “as much as he deserved.” It refers to the calculated value of the services rendered and paid for. It essentially entails a pledge or agreement to pay a fair price for the work and materials supplied.
This is applicable even if there is uncertainty regarding the payment required for the service performed under the given circumstances. This would happen if there were no formal, legally binding agreements between the parties and payment was past due.
Specific performance is an alternative legal remedy that the non-breaching party can seek if damages are insufficient. Specific performance is best defined as the breaching party’s court-ordered performance of contractual duties.
Specific performance can be used as a contract breach remedy where the subject matter of the agreement is unusual or unique, and damages would not be sufficient to put the non-breaching party in the same position as if the breach had not occurred.
If the non-breaching party has provided a benefit to the breaching party, the non-breaching party may opt to terminate the agreement and sue for compensation.
As a contractual remedy, “restitution” refers to restoring the non-breaching party to its pre-breach condition. At the same time, the “cancellation” of the contract nullifies it and releases all parties from its terms and conditions.
If you have been slapped with a breach of contract lawsuit or believe that another party has dishonoured their contractual obligations to you, we are here to help you. Before taking any action, it’s advisable to first of all consult with experienced lawyers.
Our business lawyers at Pearl Lemon Legal are available to counsel you on all the nitty-gritty of corporate law, contractual obligation, court proceedings, property disputes, contract litigation, and contract claims, among others.
Book a call today. Our experts are more than willing to help you.
Yes, if the party is one of the contract’s intended third-party beneficiaries. Let’s imagine, for instance, that your parents need to paint their house but lack the funds to do so. You sign a contract with the painting business to have your parents’ house painted.
They are designated third-party beneficiaries of your agreement with the painter. You accept a job 3,000 miles away and cannot return soon, and the painting business does a poor job. Despite not being a party to the contract, your parents may bring a claim on their behalf as plaintiffs.
If either wants to, they can separately file a claim for damages for the breach. Or, if the damages are substantially close in value, they could agree to a compromise that would equalise the losses. It is not uncommon for both parties to file countersuits for the same breach in legal proceedings.
It is rather typical. If damages are later granted, they are then offset. The court will decide whether one party’s breach led to another’s or if there are other difficulties. Sometimes nothing transpires in the end.
In court. The value of the dispute and the complexity of the legal issues at stake determine which court should hear the case. Most disputes will be appropriate for the County Court; however, cases with major ambiguity in the law or when there is a possible liability are better heard in the High Court.
For a free, no-obligation conversation about how we might be able to help with your current legal issues, please contact us today.