A breached contract can disrupt business operations and may lead to substantial legal battles. Any case requires a proper understanding of the legal process for its effective resolution.
This article elaborates on every step involved in a breach of contract claim, starting from filing and evidence gathering to trial and enforcement that would help you work out and manage the disputes over contracts with confidence.
Essential Components of a Breach of Contract Claim
- Existence of a Valid Contract: First of all, there must be a valid contract that embodies a proposal, its acceptance, and its consideration. Nobody can pursue the action upon the breach of the model of the discussed contract in the absence of any such legal binding.
- Contract Breach: Establish that a particular party has let down in the scope of performing a contract by either not delivering the service asked or the goods ordered or by breaching certain aspects of the provisions in a contract in regard to performance.
- Materiality of Breach: For breach of contract claims to be valid, the breach must significantly undermine the core purpose and objectives of the contract. Minor or trivial breaches are insufficient, the issue must involve fundamental aspects of the contract.
- Proof of Damages: The side needs to show that the breach led to some kind of loss or damage. This could include direct losses or even knock-on effects from breaking the contract.
- Causation: Show how the actual breach resulted in money problems or operational issues for the affected side.
- Mitigation of Damages: The side claiming the breach must prove they took sensible steps to cut their losses. If they didn’t, it might lower the amount of damages they can get back, as they’re expected to keep the harm to a minimum.
The Legal Process for Filing a Breach of Contract Claim
Pre-Litigation Steps
- Contract Review: Carefully review the contract to identify what terms and obligations have been breached. This ensures that your claim is on par with the provisions in the contract and lays an excellent foundation when presenting your case.
- Gather Evidence: Collect all the relevant documents such as contracts, correspondences, and financial records that establish a breach and prove the damages you suffered. This evidence will go a long way in proving your claim.
- Attempt Resolution: Resolve the problem through negotiation or mediation, rather than necessarily resorting to court action. This process may remove any need to file suit and perhaps result in a speedier mutually acceptable settlement.
Filing the Claim
- File a Complaint: When the informal resolution is not effective, a formal complaint should be filed before the proper court. The complaint should point out the commission of a breach, the damages that were suffered, and a legally sufficient basis for your claim to commence the action in court.
- Serve the Defendant: The complaint is to be served on the defendant, which, in other words, means a legal notice is provided to the defendant regarding the claim. Such proper service is required for the court to have jurisdiction to commence the case.
3. Discovery and Pre-Trial
- Discovery Phase: The parties enter into discovery, a stage at which evidence and information are exchanged between parties. This step helps both sides develop their arguments and may also lead to a settlement before trial.
- Pre-Trial Motions: File pre-trial motions, which include motions to dismiss or for summary judgement. This would comprise some specific legal issues one or both parties deal with and could partially resolve the dispute prior to trial to shorten the process of trial.
Trial and Post-Trial
- Trial Proceedings: Present the case before the court at trial, where both sides will put forward their evidence and other arguments before a judge or jury. The court will decide based on what is presented accordingly.
- Post-trial Motions and Appeals: After the trial, consider post-trial motions or appeals if not pleased with the trial’s outcome. At this stage, one reviews the record at trial and argues that a different result should be reached where warranted.
Enforcement
- Enforcement of Judgment: In the case of a victory against your opponent, pursue enforcement of the judgement or damages awarded. This may include legal steps such as garnishments and liens, or any similar acts done with the view of securing payment.
Best Practices for Handling a Breach of Contract Claim
- Document Everything: Maintain records regarding all correspondence, agreements, and violations. Comprehensive documentation will help your case and contribute to the determination of damages.
- Seek Professional Legal Advice: Consult a lawyer who deals in contract law. They will help you understand your rights and go through the legal proceedings with ease.
- Evaluate Settlement Options: Alternative dispute resolution options, such as mediation, may effectively resolve the issue without filing a lawsuit. Settlements take less time and money than elongated litigation.
- Clearly Articulate the Breach: You should clearly spell out the breach in your claim. The more details you provide, the easier the court will find it to identify the problem and support your claim.
Conclusion
Breach of contract should be approached in a way that one can strategically forestall its effective resolution.
Documenting properly, seeking the advice of attorneys, searching for settlements, clearly defining the breach, and taking immediate action – the efficacy of such steps can enable you to create ways out of a contract dispute and protect your interests.
Guest writer.