Often, to meet specific business objectives, two or more parties enter into an agreement. In legal terms, this is referred to as a contract. A contract refers to an agreement with specific terms between two or more people in which there is a promise to do something in return for a valuable benefit.
Ideally, after all the parties have consented to the contract terms, they go ahead to fulfill their parts. However, that is not always the case. Financial difficulties, an unwillingness of a party, or some unexpected event could lead to a breach of contract. When this happens, you need a Connecticut business lawyer who has the experience and expertise to help defend your claim. But first, let’s discuss what a breach of contract entails.
What Is a Breach of Contract?
As stated earlier, entering into a contract implies that the parties involved have responsibilities to fulfill. The failure to meet these responsibilities is what we refer to as a breach of contract. Therefore, depending on the terms of the agreement, a breach of contract could occur if one of the parties does not fulfill an obligation on time, does not fulfill it at all, or does not satisfactorily fulfill it.
Generally, a breach of contract can fall under two categories — a material and an immaterial breach. A material breach of contract is one that irreparably harms the contract and makes it impossible to exist.
For example, an individual who wishes to buy a car could do all the necessary paperwork and pay for the seller, but the seller changes their mind and refuses to sell. Such a breach is a material breach of contract. On the other hand, an immaterial breach does not harm the fulfillment of the contract.
What Are My Options in the Event of a Breach of Contract?
Most people assume that the only remedy for a breach of contract must involve the court. However, these are not the only options available. After the terms of an agreement have been breached, you need to assess the damage incurred. The aim of doing this is to know whether pursuing legal action would be too costly. Often you’ll realize that alternative dispute resolution would be more beneficial.
If you have been a victim of a breach of contract, try to speak to the other party. While you may want to pursue legal action, most contractual conflicts can be resolved without resorting to legal measures. Also, civil litigations are pretty lengthy and expensive.
Find out why the other party was unable to fulfill their part of the contract. If their reason for not doing so is minor and can still be settled out of court, you’re better off choosing this option. But, of course, there are situations in which the erring party is unwilling to talk or evade any attempt to arrive at a reasonable settlement.
In this case, you can go the legal route. Here, you can file a civil action for a breach of contract. Your Connecticut business attorney can help you file the lawsuit. Furthermore, you can choose alternative dispute resolution options like mediation and arbitration.
Mediation refers to a process in which a third party helps the parties in a dispute to arrive at a favorable conclusion. Here, the third party is impartial and has no ties to either of the conflicting parties. The mediator ensures both parties speak amicably until they resolve their conflict.
Arbitration, like mediation, requires a third party. It involves submitting a matter to a third party who makes a decision. It is similar to a trial in that the arbitrator listens to all sides before making a decision. However, the similarities end there as options for appeal are limited to arbitration. Note that in Connecticut, you cannot appeal an arbitral decision after 30 days.
Connecticut Business Lawyers Can Help You in Breach of Contract Situations
As a business owner in Connecticut, you probably get into contracts with other businesses and employees. Therefore, you may find that there are occasional contract breaches. Our experienced business lawyers at Aeton Law Partners can help you in such situations.
We would advise you on the best course of action to take, depending on the facts of your case. On the other hand, you may discover that you have been named a party in a breach of contract lawsuit. In that case, it would be best if you were advised by qualified business lawyers on what steps to take. Contact us today to learn how our lawyers can help you.