When two or more people enter a contract together, every party is typically under the general assumption that the terms will be abided by. Unfortunately, one or more of the people who are part of this contract may breach the terms listed. When this happens, a business owner or individual person may suffer substantial losses. In response, this party at a loss may seek restitution for another failing to uphold his or her duties.
Here in the article below, we have answered a few questions people may have about breaching of contracts and why meeting with an attorney along the way may be in your best interest.
When are statements considered contractual agreements?
It is recommended that any agreement made between parties, is written and signed through an official contract. Sometimes, this does not always happen due to time constraints or other factors. When the agreement was only verbal, then it may be considered an oral contract. One party may sue the other for compensation if the verbal agreement was not fulfilled, and it must be proven that the following elements applied:
- There was a promise made by one party or person, to the other.
- The promise was reasonable, in which the other party was understandably under the assumption that this promise would be upheld when the verbal agreement was made.
- The person who made the promise failed to live up to his or her end of the bargain.
- There were no terms of the agreement which permitted the promising party to back out of their obligations.
What are some tips when creating a written contract?
As stated above, verbal agreements should eventually become a tangible document that both parties provided a signature for. When creating such a contract, these parties should work with an attorney that is experienced in contract agreements, to help ensure the document is legally binding and no loopholes are present. Before signing this document, an attorney should review the terms listed to see that both party’s rights are protected.
What should I do if the other party breached the contract?
If a contract was breached by another party, it may be best to meet with a business contracts lawyer Folsom, CA trusts as soon as you can. When a breach of contract happens in regards to a person’s business, the consequences of an agreement being neglected can put the owner in serious financial distress. Before taking legal action all on your own, an attorney can evaluate whether a breach did in fact occur and what you can do next to seek compensation.
What kind of damages may a person receive if another breaches the contract?
After it has been determined that a breach of contract has happened, the party who suffered damages may be able to receive compensation for their losses. In the majority of cases, monetary retribution is awarded to the party who endured damages. If financial compensation does not fit the loss experienced, another type of compensation may be awarded instead.
Thank you to our friends and contributors at the Yee Law Group for their insight into business law and breaches of contract.