The Function of a Breach of Contract Attorney
The Definition of a Breach of Contract
A breach of contract is a violation of a party’s legal obligations. Contracts contain provisions that are based on the parties’ intent in entering into the agreement. In order to fulfill those intentions, the parties have legal obligations under the contract to uphold their promises and duties.
There are four types of breaches of contract:
Minor Breach
Also called a partial breach, a minor breach is a breach of contract that is relatively inconsequential or non-material. For example, if you hire a videographer to film your wedding, and he is an hour late, you still consider him to be in breach of contract; however, you may not demand damages for his tardiness.
Material Breach
Also called a total breach, a material breach is a major violation of the agreement. When one party materially breaches the contract, the other party is released from its remaining contractual obligations. A party may choose to fully discharge its obligations, but it has no obligation to do so. An example of a material breach is someone who sells a car that has been in an accident but fails to disclose that to the buyer . The purchaser would be within his or her rights to reject the car, demand a refund and seek damages.
Fundamental Breach
Fundamental breaches are so significant that they alter the "root" of the contract. Either one or both parties may be released from further liability. It is the most serious type of breach. An example of fundamental breach is if a person hires subcontractors to build his or her house, but refuses to pay them because they did not build the house to the specifications agreed upon in the contract.
Anticipatory Breach
Also known as anticipatory repudiation, an anticipatory breach occurs when one party to a contract declares its intent to breach the contract before the time for performance has arrived. It provides the non-breaching party with two options: it can terminate the contract immediately and sue for damages, or it can wait for the other party to perform and then sue for damages if it fails to do so. For example, if a videographer is permitted to cancel his contractual obligations within two weeks of a wedding, the couple still has to wait until that date to see if the videographer will fulfill his obligations before it can look for a new videographer.
Why Retain a Breach of Contract Attorney
If you’re in a position where you are dealing with a breach of contract, it’s important to hire someone who can evaluate the term and give you options. This is often the first call people make when they are dealing with a breach of contract. That’s a good place to start, but as the matter progresses, hiring a lawyer with experience handling breaches is helpful. Whether they are investigating the breach, breach issue for you and what options are available. You will get legal advice on whether or not the breach issues are significant or if they are not significant.
If the breach is significant, your lawyer can help pursue it – suing or making a demand against the parties that are involved. Oftentimes it’s not so clear cut. Sometimes there are contractual provisions that need to be interpreted. There is a set of rules that controls interpretation of contracts, and having a lawyer on your side to interpret the meaning and enforce the meaning is very important, especially in commercial litigation. What contract rights you have are often the most valuable things that you own, and having a lawyer who will fight for your rights is important. They can file a lawsuit, prosecute and defend the case.
For example, there are times when an opposing party breaches a contract with you then sues you, saying you didn’t fulfill your obligations under the contract. When there is a contract dispute, it often means that the court is going to get involved. The best way to protect your interests is to have a lawyer representing you. It’s very important to to get a lawyer to help interpret the contract and see what issues are involved, then begin to piece together what the options are. How far do we want to go with this, and how do we want to go about enforcing our contract?
Important Duties of a Breach of Contract Attorney
A breach of contract occurs when one party fails to fulfill their responsibilities stated within the contract. As a result of this, the other party suffers from a significant loss of business or revenue. When this happens it is often recommended that you immediately contact a breach of contract lawyer. Your attorney will be able to handle all the various legal hurdles that arise during a breach of contract. However, it is not enough to hire a lawyer who specializes in breach of contract without knowing what their key responsibilities are for your case. The first major responsibility of your breach of contract lawyer will be to assess the amount of damages that the breach has caused. If a resolution is not reached and the case goes to trial, then the amount of damages is crucial to a winning case. Your lawyer will also need to draft the demand letter for the opposing party. This letter will state what they did wrong along with the damages that you believe you should be compensated for. Depending on the amount of damages your lawyer believes you should be able to recover for, you may also want to file a lawsuit. If this is the case, your lawyer will draft the complaint that they will file to begin the litigation process. They will also be able to advise you on the best course of legal action. Another duty of a breach of contract lawyer is to advise their client on alternative options such as mediation, arbitration or settlement. If your lawyer recommends this, then they will need to have the necessary skills to be able to negotiate a settlement with the opposing party. This will enable you to avoid going to trial as well as being able to recover for the damages sooner rather than later. Your breach of contract lawyer will be able to advise you on any other options as well. A breach of contract lawyer has the difficult task of having to negotiate with the opposing party while also advising their client on the best legal options to protect their rights.
Methods of Settling Breaches of Contract
Breach of contract disputes arise when one party to a contract fails to fulfill their contractual obligations in some way. For example, a dispute can arise when one party to a contract is late with a payment where the contract requires timely performance of all terms, or when one party fails to provide goods or services where a contract calls for them. Breach can be partial or total, and resolution of the dispute may require several different avenues to be exhausted.
Unless all parties to a contract agree otherwise, the first method of resolving a breach of contract claim is through two-way communication. Parties to a contract should be honest with each other and openly discuss their grievances as soon as possible. However, it is important to review the contract to determine how the dispute should be resolved. It is not uncommon for contracts to include terms regarding mediation or arbitration as a first attempt to resolve the issue.
When a dispute involves a larger amount of money the parties should consider hiring an attorney experienced in breach of contract disputes. The lawyer can help draft a letter of intent, which may be sufficient to resolve the matter.
If a breach of contract claim cannot be resolved through negotiation, mediation, or other viable alternatives to litigation, it may then be prudent to proceed to court to perform a settlement. As with any civil claim, a claim for breach of contract can also be litigated when necessary, and a lawsuit can be filed to recover damages.
Considerations When Deciding on an Attorney for a Breach of Contract Claim
When faced with a breach of contract allegation or accusation, the stakes are high. From business losses to potential damages, the financial impacts are usually substantial and difficult to calculate. Choosing the right breach of contract lawyer to protect your interests is paramount. But, how do you decide which lawyer is best for you?
Here are some factors to consider when selecting the best breach of contract lawyer to fit your needs:
Experience & Practice Focus: In addition to knowing the law (e.g., contract, tort, statutory), you want a lawyer who has experience with pleadings, discovery, expert witnesses, trial preparation, jury selection, jury instructions, verdict in the courtroom, and the appellate courts if necessary. Yes, there is a lot to know and do during litigation. This is especially the case in complex contract litigation where lawyers dedicate their entire practices to the area of law.
Specialty Practice & Industry Experience: A specialty practice provides efficiencies and cost savings to the client, particularly in contract litigation. You want a contractor lawyer with experience in all areas of litigation and arbitration, including construction defects, design contracts, claims, disputes, lien, bond and stop notice actions, insurance and additional insured conflicts , lawsuits, and appeals.
Choosing a breach of contract lawyer who has knowledge and experience with the industry also leads to better results. Having a lawyer who understands construction principles, systems, concepts, and terminology can mean the difference between a winning or losing outcome.
Results & Reputation: A proven track record matters. What have the lawyer’s prior clients said about the lawyer or law firm? How did the lawyer resolve the matter? Reputation and respect among other lawyers is also important. Finding out about a lawyer’s reputation is not always easy, but what you find out helps to determine if the lawyer will represent you well in a future matter.
Fees/Costs: Lawyers and law firms are obligated to provide a good faith estimate of the lawyers, law office, and expert witness fees and disbursements likely to be incurred by the client, when requested by a prospective client. While we all want a good value, this can be a difficult aspect of hiring an attorney when comparing one firm to the next. Tariffs, hourly rates and flat fees are just a few of the different ways in which fees can be structured.
While the above are not all of the factors to consider when hiring a breach of contract lawyer, they are some of the most important.
Possible Legal Outcomes of Breaches of Contract
Currently, the only legal remedy for an unfulfilled contract is a monetary payout for civil damages. If a breach of contract case is resolved, the outcome may produce one of several results, including compensatory damages, specific performance, or rescission.
Compensatory Damages: A popular and easy way to resolve a legal case is through monetary damages. Typically, the party who files the case is seeking monetary damages to replace what is lost during a violation or breach.
Specific Performance: A breach of contract case may also lead to the completion of a contract through services rather than monetary means. In some cases, the court may order the specific performance of a contract where monetary damages are not sufficient for compensating the victim.
Contract Rescission: Rescission of a contract involves the voiding, annulment or set-aside of a contract due to factors beyond the control of the parties involved. Rescission allows both parties to resolve the issues associated with the contract without facing huge civil penalties or harassment from attorneys.
Misunderstandings of Breach of Contract Attorneys
Despite the growing trend of employers seeking out and retaining lawyers, there remains a number of common misconceptions about the role and utility of an attorney when it comes to properly drafting contracts and enforcing your rights under those same contracts.
Myth 1: People Think You Have to Sue to Work With a Breach of Contract Lawyer. One of the biggest misunderstandings about hiring a breach of contract lawyer is the idea that if you hire one, he or she will force you to sue. A lot of people hire lawyers simply for consultation purposes, no litigation, no legal "action", but the hiring of a lawyer so that the lawyer is in the wings, as it were, to help them down the road should a lawsuit become necessary.
Myth 2: People Think Once You Work With a Breach of Contract Lawyer, They’ll Be Your Lawyer for Life. This is not true . Attorneys have clients for different periods of time, from an hour to a couple of weeks. So you’re not necessarily going to be bound to your lawyer for life, they’re there to help you with that specific matter and succeed, as well as protecting your rights.
Myth 3: People Think There’s a Simple Process to Every Breach of Contract Dispute. Not every contract dispute has a singular format to it. Every client and case are unique to each other. Generally, after investigation, we’re able to explain the process to you and get you started down the road toward legal satisfaction. However, not every breach of contract case requires a lawsuit. Still, the laws surrounding breach of contract suits are complex and have many nuances. This is why it’s generally best to let a breach of contract lawyer represent you on any dispute, because even minor details can easily determine the outcome of a case.