Contracts are promises encoded into law. Most cases consist of written contracts but it is not unheard of to have a verbal contract. If you believe you have a case with either form of contract and its breach don’t let a potential case go unheard. Get in contact with Borland Phiffer Law today.
The existence of a breach.
To sign a contract, to act in a certain way, or complete a given project under specified terms and meeting certain professional or business standards, then fail to fulfll the contract is a violation of civil law and will subject the violator to legal action. In evaluating the case for breach of contract, the judge will decide
- Did a real contract actually exist?
- If it existed, what did the contract really require of the parties?
- Was the contract modified at any time after it was agreed to or signed?
- Was the contract actually breached?
- Does the party who is presumed to have breached the contract have any legal defense against
the enforcement of the contract? - What damages were caused because the contract was not fulfilled?
The materiality of the breach.
After the actual breach of contract is established, the judge must decide if the breach actually caused any damage and how much damage. The law is very careful in the judgment of a breach of contract. There are significant considerations for both sides. The important question is,
- Was the breach actually material to the contract?
- How much value was actually received by the plaintiff (the party whose contract was
breached)? - Can the plaintiff actually be adequately compensated for any damages the breach caused?
- How much did the defendant actually perform on the contract?
- Did the contract result in any unforeseen hardship?
- Did the defendant do anything willfully negligent or willful?
- What is the likelihood that the defendant can and will perform the remainder of the contract?
The degree to which the breach of the contract was material is important because it goes to the question of penalty. If the defendant breached the contract but the complainant still received the item or service specified in the contract, the breach is minor. If the contract does not specify a time or date of completion and specify that the deadlines are from, a reasonable delay on the part of the contractor can only be considered a minor breach. If the breach is minor, but value under the contract is received, the complainant must still fulfill his or her part of the contract (in many cases, pay for the goods or services delivered under the contract). However, the complainant may receive damages caused by the breach.
Penalties for breach of contract.
In the real world, delays happen, financial problems crop up, and events can hinder or even prevent a contract from being fully carried out. Many contracts specify the penalties if breaches of contract arise. The contracts may specify a fixed date for delivery and specify that the precise date is fixed for reasons of the contractor’s own business obligations. If no specif date and terms are specified in the contract then minor breaches may not entitle the contractor to any penalty.
Compensatory damages: However, when breaches are major and material to the contractor’s business, a settlement is reached through a lawsuit. The contractor may be entitled to compensatory damages which are designed to put the non-breaching contractor in the position he or she would have been in if the breach had not occurred.
Punitive damages: Although they are rare in business cases, payments may be specified by the court, above and beyond full compensation. These payments are designed to punish the party who breached the contract for particular negligence or wrongful acts.
Nominal damages: Even if the breach of contract is judged immaterial to the complainant, token damages can be awarded.
Liquidated damages: Amounts specified in the contract itself as payable in case the contract is breached will be awarded as per the contract. Liquidated damages should always be a reasonable estimate of actual damages that would result from a contract breach.
Other damages include a court order to the breaching party to perform or complete certain duties under the contract. Cancellation and restitution may be awarded. The non-breaching party may cancel the breached contract and demand restitution of the breaching party to restore the non-breaching party to the position he or she was in before the contract was signed.
Borland Phiffer Law, PLLC
Misty Borland Phiffer is licensed in Texas and New Mexico. If you or a loved one has experienced an breach of contract or breach of warranty negligence, contact us. No business or person should push profits over public safety and those that do are to be held accountable. By aggressively pursuing breach of contract or warranty cases, Misty’s goal is to achieve compensation for victims and to serve as a warning for the party who breached. To schedule your free case review, text the Borland Phiffer Law Firm today. We stand ready to serve as your personal injury trial attorney.