How Can Business Litigation Address a Breach of Contract?

 Posted on December 13,2021 in Breach of Contract

If you are a business owner, you probably have entered into multiple different types of contractual agreements, such as vendor or supplier contracts, employment contracts, licensing contracts, or contracts to provide goods or services to customers. These agreements are meant to protect your rights and interests by ensuring that both parties fully understand their obligations, the timeframes for completing work or delivering products, the restrictions that apply to either party and the amounts and methods of payment. If one party to a contract fails to meet their contractual obligations or otherwise violates the contract’s terms, the other party may pursue business litigation to address the alleged breach of contract.

Issues Addressed During Breach of Contract Litigation

To be valid, a contract must include an offer made by one party, the acceptance of that offer by the other party, and consideration provided by one party to the other. This consideration may include a monetary payment or any other benefits received in exchange for agreeing to the contract’s terms.

A contract will fully detail the obligations that apply to each party, and any failure to meet these obligations will be considered a breach of contract. Litigation will typically involve material breaches of contract in which a party’s failure to uphold the terms of the contract defeated the purpose of the contract. However, litigation may also address a minor breach of contract in which a party only violated some of a contract’s terms or an anticipatory breach in which one party will be expected to fail to uphold some or all of their obligations.

During litigation, a plaintiff will need to prove the following:

• The parties entered into a valid contract. In some cases, a defendant may dispute the validity of a contract based on issues such as fraud, misrepresentation, or duress.
• The plaintiff met all contractual obligations. In cases involving a material breach of contract, a plaintiff may be excused from their obligations.
• The defendant failed to fully meet their obligations under the contract.
• The plaintiff suffered damages due to the defendant’s breach of contract. These damages may include monetary losses or other forms of harm, such as a loss of reputation.

If the plaintiff demonstrates that the defendant committed a breach of contract, they may ask for different types of remedies. These may include monetary damages to compensate the plaintiff for losses that occurred as a direct or indirect result of the breach, and in some cases, punitive damages may be awarded because the defendant violated the law or acted in a way that was purposely meant to harm the plaintiff. The plaintiff may also ask for an injunction to be issued that will require the defendant to meet certain contractual obligations.

Contact Our Wheaton Breach of Contract Litigation Lawyers

As a business owner, you will want to make sure any issues related to contracts will be addressed correctly. At Stock, Carlson & Asso. LLC, we can help you determine how to proceed in cases where you have suffered losses because another party violated the terms of a contract. We can also provide you with representation in cases where you have been accused of committing a breach of contract. For skilled and experienced legal help with contracts and other business-related issues, contact our DuPage County business litigation attorneys at 630-665-2500.

Sources:

https://www.investopedia.com/terms/b/breach-of-contract.asp

https://www.thebalancesmb.com/breach-of-contract-398138

https://www.illinoiscourts.gov/Resources/5b45636e-1027-4f70-8a7b-a0f79b96a0fc/700.00.pdf