What is a Breach of Contract?
In the business world, there are a lot of disputes you’ll have to go through. But, one of the more common is that of your contracts. More specifically, when a party breaches a contract. A contract establishes obligations between two or more parties, and each party is responsible for performing those obligations. If a party fails to fulfill their end of the deal, it is considered a breach of contract.
Depending on the exact terms of that contract, a breach can occur when:
- The party does not meet a specified deadline;
- The party does not perform in accordance with any guidelines that were listed in the agreement’s terms;
- The party does not do anything.
What Happens after a Contract is Breached?
If a contract is breached, one or multiple parties may enforce the terms of that contract or try to recovery any financial harm the breach caused. First, the parties should discuss the breach with one another and try to resolve the issue before taking additional legal steps (read about contract arbitration and mediation). If no resolution can be found, however, a lawsuit may need to be filed in order to enforce the terms of the agreement and seek retribution for the breach.
Can a Party be Compensated for Losses
When a party breaches a contract, the affected party may receive monetary compensation for any losses that occurred because of that breach. This would require the affected party to file a lawsuit, in civil court, against the guilty party. You’ll need to show your losses due to that breach of contract, and then you can seek damages, which can be as much as three times the amount of your losses.
Some common losses that occur with a breach of contract include, but are not limited to:
- Loss of customers
- Loss of business
- Loss of products or productivity
Other times a company may seek damages for the position they were placed in because of the breach. For example, you had another contract with a company to deliver goods to them by a specified time. But, the party that breached the contract (your supplier) failed to deliver goods to you; therefore, you breached a contract with your other client as a result.
Read more about contract disputes and mediation.
Get Assistance from a Skilled Miami Business Attorney
Contract law is highly complex. Even if you have proof the other party breached the contract, you need Miami business attorney to vigorously represent your business. The Campbell Law Group can help you with your breach of contract. Contact us today by calling 305-460-0145.