3 important facts about breach of contract claims

On Behalf of | Oct 25, 2021 | Civil Litigation |

Contracts form the bases of many business relationships. Between employers and employees, sellers and buyers, wholesalers and merchants, contracts exist to dictate the terms of their relationships. New Jersey residents may be bound by numerous contracts through their employment, business endeavors, and real estate holdings.

When a person fails to act or perform their duties as stipulated in a contract, they may be said to have breached their contract. Breaches of contract can be costly and those who suffer then may incur damages. Understanding one’s rights under a contract is imperative to getting back what one deserves under the terms of their agreement.

Fact #1: Not all contracts have the same remedies

A remedy is a means of making an aggrieved party whole after a breached contract. However, not all remedies are equal in different types of contracts. For example, an employee who is wrongfully terminated may wish to get their job back and seek reinstatement as their remedy. A buyer of goods, though, may want the remedy of specific performance to compel a manufacturer to provide them with the goods that were promised under contract. Individuals should look to their own agreements to understand what remedies may be available to them when breaches occur.

Fact #2: Litigation may not be necessary to resolve all contract disputes

Though some breach of contract claims require litigation to be resolved, many do not. An individual suffering from a breach may be able to work with their contractual partner to find a remedy outside of the courtroom. A civil litigation attorney may be able to advise an individual in the situation their options under the law.

Fact #3: Not all breaches of contract are created equal

 In some cases, a breach of contract may amount to the total abandonment of an agreement between two parties. In other cases, a breach of contract may amount to a minor inconvenience related to a single contractual term. The severity of a breach will influence the outcome of a breach of contract case and the extent of damages the aggrieved party will receive.

Breach of contract claims are important and can help aggrieved parties recover their damages. Going to court on a civil litigation case can be a necessary component of resolving a contractual dispute between two parties.