How Do You Determine if a Contract Has Been Breached?
When two parties agree to a legal contract, it is usually expected that whatever was agreed to would be completed according to the contract’s terms. A breach of contract is a legal cause of action in which a binding agreement is not honored by one or more of the involved parties.
What makes a contract valid?
Generally, a valid contract relies on the following:
- Consideration – Parties are required to exchange something of value, which could include services, goods, or another promise;
- Mutual assent – Both parties must assent (agree to) and fully understand the contract terms and conditions; and
- Offer and acceptance – One individual should make the offer, and the other party needs to accept the offer.
Additionally, some contracts must be in writing to be deemed legal. An example may include real property (real estate) contracts.
What is a breach of contract?
When individuals involved in a contract fail to meet their obligations, a breach of contract occurs. There are varying types of contract breaches, from minor to material (a breach of a term so important to the contract that the purpose of the agreement cannot be achieved). Generally, the severity of a contract breach is pivotal when attempting to resolve a dispute.
In some cases, legal proceedings may be necessary if a party is determined to have breached a contract. The legal remedies for breach of contract may include restitution, reformation, money damages, or rescission. If monetary damages are not adequate, a court may require the breaching party to perform the duties specified in the contract.
Help is available
The attorneys at O’Reilly Rancilio are available to assist individuals involved in a contract dispute. To speak with an attorney, please call 586-726-1000 or visit our website.