If you have to ask a question regarding whether parties to a contract breached the terms in some way, then it is likely that they did. Most of the time, investigations show some type of breach. There are many ways in which someone could violate a contract that you have with them. Some of these may be easier for you to prove than others. Similarly, some may make it easier for you to collect and damages in court.
The first test would probably be to determine whether the breach of contract was a material or immaterial breach. You may want to look for material breaches first. These types of violations would likely allow you to achieve your goals more easily, whether you wanted to avoid pain for product you did not need, reclaim lost profits from a failed delivery or recoup any other loss you incurred.
Minor or material break
If you suffered a loss due to the actions or inactions of the other party but you found that there were no material breaches of the contract, then there may be a minor or immaterial break. In these cases, you may have to show that this breach directly caused the loss. You may also have to show that it was reasonable to assume that this loss would have occurred ahead of time.
One of the most common types of immaterial breaches is the delay of delivery of services or goods. Many contracts specify delivery dates and completion dates but do not specify that these are central concerns. However, some of these immaterial breaches of contract cause large and foreseeable losses and could form the basis for your successful case.
If you suffer the loss after a business deal, especially if the other party did not do what you expected or what was in the contract, then you may want to consider a lawsuit or an alternative dispute resolution. However, please do not take this as legal advice pursuant to any real situation. It is only a theoretical explanation of the subject. Contact our law firm to get legal guidance.
How do you prove breach of contract?
When you enter a contract with another party, you expect them to execute their obligations as per the terms of your agreement. However, they may fail to do that in some cases without legal reasons, thereby breaching the contract.
Given that the consequences of a breach can be costly to your business, how do you go about proving your case? Below is what you need to show.
- The existence of a legally binding agreement
Usually, contracts have key components that make them binding to the parties. While your agreement can be oral or written, it must have an offer that the other party accepts with some consideration, such as payment. - You performed your obligations
You must show that you played your part and that no lapse on your end was the reason for the breach. By adhering to the terms of a contract, you are entitled to enforce it. - Non-performance by the other party
You also need to show that the other party materially breached the contract. A material breach has a substantial impact on the contract’s terms that prevent it from being fulfilled. - You suffered damages as a result of the breach
You need to have proof of damages or losses that came about the breach of contract. Damages may include time lost or monetary losses brought about by the breach.
Protecting your business interests
If your business incurred losses from a breach of contract, it is possible to seek a remedy for that. You can turn to the courts for relief if you have exhausted all other options in resolving the matter. However, it is necessary to have the proper documentation and knowledge of the process involved for a desirable outcome.
Remember, there is a limited time to make your claim, and the actions you take following a contract breach will determine whether or not justice will be served.