Despite doing their due diligence before entering an agreement with clients, employees and partners, businesses can find themselves involved in a dispute from time to time. They may accuse you of a breach of contract and subsequently take it further by filing a lawsuit seeking damages. Still, just because they filed the suit does not justify the case.
There are two types of contract breaches
Contracts cover a variety of different arrangements, but there are generally two types of breaches:
Material breach: This is the more serious of the two. It involves failing to meet the deal’s terms or providing something not agreed upon. Plaintiffs will often seek financial damages for the substantial harm that the breach caused.
Minor breach: This also involves not meeting the terms of the agreement, but the dispute consists of a delay or late delivery of goods or services. Still, there may be a valid reason for the delay that caused the breach. There is little to no direct impact on the plaintiff’s bottom line. The non-breaching party should still expect to pay when there is a minor breach.
Fighting the claim
Defendants can employ several lines of defense. The defense can present an argument on such grounds that:
- Performance of the terms was impossible.
- Enforcement would violate the law.
- One party used fraudulent means to obtain the agreement.
- The contract lacks consideration (payment for goods).
- The contract had an error, and the plaintiff was aware of the error.
Litigators should handle these disputes
Attorneys provide a wide range of services, including drafting enforceable contracts, but not all are litigators presenting their cases before a judge. Businesses likely to see a dispute turn into a breach of contract lawsuit can discuss the details of the matter with an attorney with a background in litigation.