Summary:
A breach of contract is a potential risk faced by anyone involved in a legal agreement. When any party with a valid agreement fails to meet their obligations, there is still a legal remedy to overcome damages. This article will talk you through what a breach of the contract exactly is, the legal remedies available, and how a lawyer can help.
Body:
Whenever you’re establishing any business partnership, it is important to craft a legally binding agreement to clearly know responsibilities and legal terms for the parties involved. Especially when you deal with many agreements. Chances are that you will eventually end up being in a situation where one doesn’t deliver on the agreed terms.
If one party doesn’t serve what they’ve agreed upon or fails to meet those obligations, either partially or completely. That is referred to as a breach of contract. In such cases, the other party can opt for legal remedies to recover their losses or force them to do the duties stated in the contract. It is best to approach a breach of contract solicitor to know your rights and determine the risks involved to achieve the desired outcomes.
What is a Breach of Contract?
In a broad sense, a breach of contract takes place when any party fails to perform duties stated in a valid contract. For instance, the terms in the agreement guide the parties on what and how they should do to maintain the right balance. But if a party doesn’t follow what the contract instructs, such a situation is considered a breach of contract. And a non-breaching party is allowed to take legal action to recover damages.
A breach may occur in any of the following conditions:
- If a party fails to perform their duties given in the contract
- If defective work is being carried out
- Refusing to pay for a service or not paying within specified limits
- Fails to deliver goods or services
- Delaying in services without any valid reason
Legal Remedies for a Breach of Contract
1. Repudiation
If your contract has been breached, you might be permitted to terminate the agreement by repudiation and can claim compensation for the damages faced. If it involves a breach of a warranty, you will receive compensation for only losses.
2. Damages
You can pursue liquidated damages if the amount specified in the agreement needs to the paid when one terminates the contract. These conditions usually occur in manufacturing and property contracts. Which often result in penalty clauses for the delay in work completion.
Types of damages include:
- Special damages – compensated for proven losses, like loss of profits
- General damages – compensated for unquantifiable losses like physical problem and loss of amenity
3. Specific Performance
Under this, you can attain a court order for the other party to set out their agreed contractual obligations.
Do You Need a Solicitor for a Breach of Contract?
There is nothing bad at raising a defense against fraud, illegal actions, duress, and unconscionable contract. Not all scenarios are the same, which is why you should have a clear understanding of your rights and terms to take the most relevant step.
It is wise to consult a lawyer in London or elsewhere to take assistance in drafting documents, reviewing a contract. And negotiating the terms of your agreement. This can help decline the risks involved when you are entering into a legally binding contract and may prevent disputes over terms in the future.
If you wish to sue or are being sued for a breach of contract, a solicitor will help prepare a strong case. Determine the best defense, and give advice regarding dispute resolution.
Conclusion:
If a party entered into a contract intentionally violated the terms. Then it is vital to take the necessary steps to resolve the breach immediately. It is advised to appoint a lawyer to identify available defenses and remedies and get assistance on arbitration processes for the best possible results.
About the Author:
A London-based law firm specialized in dispute resolution and commercial litigation. Offering legal advice to businesses and individuals facing insolvency, breach of contract, employment issues. Family law matters, debt recovery, and other disputes.