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What to do When a Contract has Been Breached

Contracts exist as legal arrangements to enforce promises between two individuals or groups. Everyone that signs a contract must acknowledge their duty to perform the tasks described in the text; otherwise, they will be violating the terms of their agreement. If you have recently entered into a contract and performed every required act, then you have the right to expect the same of the other party.

When you have been involved with a contract where the other signers did not fulfill their written obligations, it becomes necessary to seek legal recourse. You have a right to justice, which usually includes financial compensation for the breach of contract.

A contract can be violated in several ways. The primary method for a failure to take place is through simple inaction. If duties are left unperformed, then the legal promise has officially been broken. Contracts can also be broken if one party hinders the ability of another party to fulfill their end of the deal. Lastly, if a party expresses intent to back out on the contract, it can also be considered a breach.

If someone breaches a contract through any of the previous means, then it is time for you to take action! Remember, written contracts are designed to hold up in court. Oral contracts can also withstand trial if properly proven. The best course is to file a lawsuit when you have an unfulfilled contract on hand. To maximize your chances, it is wise to consult a breach of contract attorney.

An expert lawyer can analyze your case to determine what damages might be awarded. There are many different kinds of awards that can be issued for damages. Most clear-cut violations fall under the clause of consequential damages. This resolution requires the defendant to pay the non-breaching party a sum that completely eliminates the wrongdoing. This amount must match the amount of money lost due to the failed performance.

Liquidated damages can replace consequential damages if the contract contains a specific clause designating a required fee for violation. Depending on the particular terms, this amount can be higher or lower than consequential awards. Punitive damages can be added on top of consequential damages or liquidated damages, so keep this in mind. These are simple legal punishments imposed by the state for breaking a contract.

If the losses were relatively low, nominal damages may be awarded instead. Other times, financial compensation is inappropriate or illegal. In these cases, you may petition for an equitable remedy. This route allows the court to mandate the fulfillment of actions designated in the contractual clauses. If a specific performance is not needed or desired, then a rescission can be ordered as an alternative. In this case, all parties can dismiss the contract as if it was never written. This path is usually only enforced to put the non-breaching party closer to their original situation.

The most important issue to keep track of is the statute of limitations. Texas has a 4 year statute of limitations for breach of contract claims. All states have different rules regarding when the time allotted for filing a lawsuit runs out. Every jurisdiction has slightly different duration, so make sure to get your case in court before the chance expires. The best way to put your breach of contract dispute in front of a judge is through the services of a professional business litigation firm. Hoch Law Firm has some of the finest legal minds available, and their breach of contract attorneys will fight to earn your compensation right away! There is no reason to simply be a victim of this kind of crime, especially when you can take action now!

Client Reviews
★★★★★
Tim represented us in a dispute with our insurance company over roof damage due to a hail storm in the Dallas area. We were very disheartened by the constant denials and dishonest treatment we were receiving from the insurance carrier, and Tim counseled us to remain patient while he systematically put together expert opinions and facts that supported our claim. Eventually we were able to settle our case and had the roof replaced on our apartment building just two months before the big tornado hit in late 2015. Our investment property was the only one in the area that did not sustain any roof damage! We were lucky with our timing, but we were even more fortunate to have Tim on our side. We highly recommend Tim's firm! Allan and Marian Goodman
★★★★★
In short order, he was able to quickly understand and master the details of our case and map out a very cost-effective, efficient legal strategy. After a series of quick wins in court, our opponent came to the table with a highly satisfactory settlement. Mr. Hoch’s ability to effectively tell a persuasive story within the confines of a courtroom is without equal. Anthony Page
★★★★★
Tim’s knowledge and insight regarding not just the law, but business and human nature in general was greatly appreciated and relied upon as we navigated through a difficult situation. Tim has my utmost admiration and respect both on a personal and professional basis. Phillip A. Reinsch
★★★★★
We use Tim Hoch to handle complex business litigation matters on a variety of topics. He combines a strategic, no-frills approach with a bottom-line mindset. He is extremely responsive, organized and thorough. We would gladly recommend his services. Richard Warren, CEO