Breach of Contract
It’s an unfortunate reality that, in the business world, plans can be thwarted by the unexpected, which all too often can prevent a contract from successfully being carried out. Do you know what you should do in the event of a breach of contract? Do you know how to answer these following frequently asked questions?
A Business Lawyer Rockville MD Counts On
At the Law Office of Daniel J. Wright, we often work with clients who are dealing with a breach of contract for the first time and need legal guidance to positively resolve the situation. We are familiar with business owners’ needs, and know how to work with them through every step of the legal process so they can have the fair outcome they deserve. To speak with a business lawyer in Rockville MD from our firm, call us today.
What is a breach of contract?
It’s important that you first understand the concept of “breach of contract” in its entirety. Legally, it is when one party who entered into an agreement fails to fulfill its contractual obligations. It can be considered “material” or “immaterial” for the purpose of deciding what is the appropriate legal remedy for the breach. In the case that the breach was material, the consequences would be more severe, as the party who failed to deliver on its obligations would carry the liability for any damages to the other party.
What happens when a contract is breached?
With either an actual or alleged breach of contract, it tends to follow that one or both parties will either seek to enforce the contract, or to recover from whatever financial harm ensued from the breach. That is when a dispute can arise. If both parties’ attempts at resolving the dispute are unsuccessful, a lawsuit can often be the next step.
That said, a lawsuit is not the only option at this stage. Both parties can also choose to have a mediator look over their dispute, or to pursue binding arbitration of a contract dispute. These courses of action are considered “alternative dispute resolution,” and are selected fairly often.
What are the remedies to a breach of contract?
The main remedies to which the party who did not breach the contract may be entitled include:
- Specific performance, and
- Cancellation and restitution.
Damages are the most commonly sought remedy, and simply means that the breaching party makes payment in some form to the other party. If the recovery of damages is not an adequate remedy, then specific performance (which is a court-ordered performance of duty under the contract) might be the chosen option. With cancellation and restitution, the non-breaching party would ultimately cancel the contract and sue the other party for restitution–thereby placing the non-breaching party in the position it was originally in before the breach occurred. Cancellation would also void the contract, and remove all obligations from all parties. A business lawyer in Rockville MD from the Law Office of Daniel J. Wright can provide you with more information about this process as it applies to your unique situation.
A Law Firm Businesses Trust
If you’re dealing with the challenges that a breach of contract brings, don’t wait any longer to consult with an experienced Rockvillle MD business lawyer. The Law Office of Daniel J. Wright offers business owners a complimentary consultation so call us today.