What Every Business Owner Should Know About a Breach of Contract
Whether the breach of contract has to do with an insurance company, a commercial company, an employment agreement, or any other type of situation, the reality is that an unfulfilled contract can have serious economic repercussions for all parties in question.
If you are accused of having violated the terms of a contract or if you want to demand responsibility from another for breaching an agreement, experienced Tampa business transaction & formation attorneys in Florida offer legal representation services.
What is Considered A Breach of Contract?
Each case of breach of contract requires rigorous analysis. To decide how to deal with a dispute over a contract, attorneys take into consideration several factors that help them determine if it is a serious breach or if it is a matter of minor breach.
Serious breach means the complete and irreparable breach of the contract, that is, that a party clearly failed to comply with the terms of the contract. That this violation involves serious breach is something that could affect the remuneration and could allow the parties to cancel the contract.
Damages and Compensation in Equity for Breach of Contract
Depending on the specific circumstances of what happened in the breach of contract, the judge could grant monetary compensation for damages and remedies in equity (or both). Monetary damages include:
- Compensatory compensation to alleviate economic losses resulting from a breach of contract.
- Punitive or exemplary damages to punish the party that did not fulfill the contract as a warning that dissuades it from other future breaches.
- Damages liquidated as designated in the contract.
- Emerging or special damages that occurred due to the breach of their contractual obligations by the other party.
The purpose of remedies in law is to compensate for immediate or future losses. But the purpose of the “equity remedies,” which the judge provides, are measures that the defendant must take or refrain from taking. In cases of breach of contract, the most common equity remedies are:
- Termination of the contract.
- Reform of the contract or rethinking of an existing contract in a way that reflects the true intent of its parties.
- Specific compliance, that is, a judicial order that obliges the party that has stopped fulfilling a contract to comply with it as written.
Do I Have to Go to Trial for Breach of Contract?
If a representative wants to resolve a dispute over a contract without delay, or if he wishes to preserve a business relationship with other parties to the case, alternative dispute resolution may be preferable to a trial. The chances of the arbitration or mediation being successful are a function of the willingness of the parties to cooperate with each other.
When it comes to achieving satisfactory resolutions of cases of breach of contract, lawyers take into account all the possibilities. Meeting the needs of our represented is the word of order. Therefore, the possible remedies and results depend largely on the way in which the represented wants to address these issues.
Contact a Florida Business Attorney Today
The best way to prevent having issues with breach of contract is to ensure that your contracts are written up thoroughly and completely to meet the needs of all the parties involved. For questions regarding an existing contract or creating a new contract, contact the office of David Toback today to schedule a consultation.