A legally binding agreement involving two or more people or businesses (called parties) that sets forth what the parties will or will not do and provides for consideration or the exchange of value is usually considered a valid and enforceable contract. Where one of the parties fail to abide by a term of the contract, however, there can be a breach of that contract.
If there is a minor breach of a contract term, the contract may still be enforceable particularly if the parties can reach a compromise or find some other way to fulfill it without any substantial damages. If it is a major breach, it could effectively end the contract and the non-breaching parties may be entitled to damages.
In most cases, the aggrieved party can collect money damages to put that party in the same position they would have been in had the breach not occurred.
There may be consequential damages as well if the breach led to foreseeable events resulting from one party’s failure to abide by the contract’s conditions. For instance, a foreseeable consequence of a breach might result from water that leaked from a damaged pipe after a plumber was contracted to fix the pipe, and failed to do so.
Damages that are agreed upon in a contract are called liquidated damages. If a breach is show to have occurred, and there is no legal excuse, the amount of damages agreed upon in advance can be awarded.
In all of these cases, the injured party cannot sit on his or her damages, but must take steps to mitigate their losses. In the example of the plumber, the homeowner cannot allow the entire house to be flooded and then claim thousands of dollars in damages.
Drafting a valid contract that clearly sets forth the rights and responsibilities of the parties requires the skills of an attorney from the Morey Law Firm, P.A. Our attorneys have drafted all types of service, buy-sell, and other contracts in the Orlando area and in the surrounding counties of Orange, Seminole, Osceola, Hillsborough, Pinellas, Polk, and Alachua.
If a breach of contract occurs and damages result, contact our attorneys at your earliest opportunity. Should you be accused of breaching a contract or if you have a legally justifiable excuse, an attorney from the Morey Law Firm, P.A. can advise you how to proceed in any contract dispute or lawsuit.
Contact the Morey Law Firm, P.A. at (407)426-7222 to schedule your free consultation today.