Breach of Contract Claims
When running a small business, owners often enter into numerous contracts. Contracts are written agreements that establish relationships and expectations while protecting the rights of each party within the contract. Small businesses may sign contracts with vendors, service providers, equipment lessors, independent contractors, etc.
Although contracts are legally binding, that doesn’t always prevent people from breaking the agreement. Small business attorneys at Froerer & Miles help clients from South Ogden, Layton, UT, and surrounding areas pursue breach of contract claims so they can be awarded financial damages for resulting losses.
What Constitutes a Breach of Contract?
A breach of contract describes any situation in which one party fails to meet some or all of the terms of a contract without legal excuse. Examples of a breach of contract include:
- Failing to deliver promised materials or services
- Failure to perform in a manner that meets the standards outlined in a contract
- Failure to deliver materials and/or complete work by the agreed upon deadline
Proving Breach of Contract
If a person files a breach of contract claim, they must be able to prove that the contract was broken. To prove breach of contract in court, plaintiffs must be able to demonstrate the following:
- A contract existed between the two parties
- One party failed to meet all or part of the terms of the contract
- There was no legal reason for the terms of the contract being breached
- The plaintiff suffered financial losses or other damages as a result of the breach of contract
Small business attorneys at Froerer & Miles will gather the evidence necessary to demonstrate a breach of contract for their clients.
Types of Breach of Contract
There are several different types of contract breaches. The type of contract breach in a claim is important because it affects the amount and/or type of damages that the plaintiff is due.
- Minor breach - A minor breach of contract refers to situations in which materials or services are delivered, but they are not provided within the promised deadline. For example, a gardening store orders and receives a shipment of planters, but they arrive a month late.
- Material breach - A material breach of contract refers to situations in which materials are not received at all, or the wrong material is delivered. For example, a gardening store orders a shipment of planters, but they receive a shipment of shovels.
- Anticipatory breach - Anticipatory breach of contract refers to situations when one party is alerted in advance that the other party will no longer be able to meet the terms of the contract.
- Actual breach - Actual breach of contract refers to situations when one party refuses or neglects to meet the terms of the contract without any notification.
Damages for Breach of Contract
Damages in a breach of contract claim vary widely. Damages are dependent on the type of losses the plaintiff suffers and whether there was a material or minor breach of contract.
For instance, if there was a minor breach of contract, the plaintiff has already received the promised materials and/or services, but they can seek compensation for any losses that resulted from the breach of deadline.
In claims involving a material breach of contract the plaintiff can pursue damages for the materials and/or services that were not provided, as well as any additional losses related to the missing materials.
Learn More from Our Attorneys
To learn more about your legal rights following a breach of contract, we invite you to reach out to the small business attorneys at Froerer & Miles. You can send us a message online to schedule a legal consultation, or call our South Ogden law firm at (801) 781-5741.