If one side fails to stick to their particular part of the bargain, there is what is called a breach. Some common reasons a breach can occur are as follows:
- One party to a contract makes it impossible for the other parties to the contract to perform the prescribed tasks.
- A party to the contract does something with ill intent in regard to the contract.
- A party absolutely refuses to perform the requirements set forth in the contract.
Sometimes, such breaches are serious enough that the contract is no longer feasible, but not all breaches cause such a stir that the parties end up in a lawsuit. This depends on who the people involved are and how serious the breach was. If the breach is what is called “immaterial,” the infraction is considered less serious and the situation can be remedied in one or more of the following ways:
- You may confront the person who breached the contract and allow an opportunity to remedy the situation.
- You may disregard or excuse the problem and continue on as if nothing happened.
- You may refuse to pay anything more or act in accordance with the contract anymore until the problem is fixed.
- You may also amend the work yourself and work out repayment in an addition to the contract.
In any case, an attorney should be consulted to be sore that no one’s rights have been compromised. Perhaps an amendment to the contract stipulating the possible recourse is necessary to prevent any future infractions. In the event that the matter is more serious, it is advisable to contact an attorney right away.
When the courts and attorneys must become involved, there are occasions when a judge may order the party who broke his or her word to supply the other party with monetary compensation or reimbursement. Such damage awards may include:
- Compensatory: This is money that reimburses you for costs you incurred as a result of the breach.
- Consequential and Incidental: This is awarded when both parties understood the possibility of financial loss if there was a breach.
- Specific Performance: This is a rare, court-ordered remedy that forces the breaching party to carry out the remainder of the contract to its exact specifications. It is uncommon because courts do not usually have the time to keep an eye on people.
- Attorney Fees: These costs are only reimbursed if it was explicitly provided for in the contract.
- Rectification: This is when the contract is re-worked to better reflect the parties’ original intentions.
- Liquidated Damages: In order to receive these damages, they must have been explicitly provided for in the contract in the event of any fraud.
- Punitive Damages: This is a fine set to punish the offender and deter anyone from repeating the offense.
- Rescission: This does not award money to anyone. Instead, each party is released from the contract and money that was advanced is returned.
In the event that a breach occurs, it is quite reasonable to retain an attorney so neither party feels that any injustice was committed in terms of monetary or legal compensation in settling the problem. An attorney from the Law Offices of OreillyLawFirm.net who is familiar with these kinds of matters will help you understand your rights and options particular to your situation.