A breach of contract occurs when one party fails to fulfill their obligations as outlined in a legally binding agreement. For businesses, particularly in construction and commercial real estate, a breach can lead to significant financial losses and disputes. This article will walk through the essential legal steps to take when dealing with a breach of contract.
Step 1: Review the Contract Terms
- Importance of Clarity: Understanding the specific obligations and conditions.
- Breach Identification: Establishing what qualifies as a breach according to the contract terms.
- Force Majeure Considerations: Reviewing clauses that may excuse non-performance under certain circumstances.
Step 2: Document the Breach
- Maintain Evidence: Collect all relevant documents, communications, and records.
- Notify the Other Party: Send a formal notice to the breaching party to alert them of the issue.
- Mitigation Requirements: Explain the obligation to mitigate damages resulting from the breach.
Step 3: Attempt Resolution Through Negotiation
- Alternative Dispute Resolution (ADR): Outline options like mediation or arbitration.
- Negotiation Tactics: Consider reaching a settlement to avoid costly litigation.
- Preparation for ADR: Document each negotiation effort for the record.
Step 4: Determine the Appropriate Legal Action
- Types of Legal Remedies:
- Compensatory Damages: Seek reimbursement for losses due to the breach.
- Specific Performance: Request that the breaching party fulfill their contractual obligations.
- Punitive Damages: Available in some cases to penalize the breaching party.
- Consulting with a Lawyer: Explain the need for professional legal guidance in selecting the right course of action.
Step 5: File a Lawsuit if Necessary
- Filing the Claim: Overview of filing procedures and time limits (statutes of limitations).
- Gathering Evidence for Trial: Emphasize the role of evidence in proving the breach.
- The Litigation Process: Describe the phases, including discovery, motions, and trial.
Step 6: Pursue Collection of the Awarded Damages
- Enforcement of Judgment: Discuss how to ensure compliance with the court’s decision.
- Collections Process: Outline actions to take if the breaching party fails to pay awarded damages.
How We Can Help
At Stryker Slev Law Group, we understand the complexities of breach of contract cases in construction and commercial real estate. With extensive experience and a dedicated team, we are equipped to guide you through every step of the process, from initial consultation to resolution. Whether through negotiation, ADR, or litigation, we aim to secure the best possible outcome for your case.
