Signing a business contract is a reason to celebrate. When one party does not fulfill their contractual obligations, though, one or both parties can suffer heavy financial losses. Failure to do what you promised to do in a contract is called breach of contract, and it is a common source of disputes between companies and their employees, vendors, and clients, as well as between business partners. A San Diego business contract dispute lawyer can help you resolve disputes that have arisen in connection to existing contracts.
What You Must Prove in a Breach of Contract Lawsuit
When you file a breach of contract lawsuit, a plaintiff must prove the following:
- The plaintiff (you) and the defendant (your business partner, employee, supplier, or client) entered into a legally enforceable contract
- You fulfilled your contractual obligations or, if you did not fulfill them, it was under circumstances under which the contract itself, or California law, requires the defendant to hold you harmless
- The defendant did not fulfill their obligations and did not have a legally or contractually valid excuse not to fulfill them
- The plaintiff suffered financial losses or some other measurable harm
- The defendant’s non-performance of their contractual duties caused plaintiff’s losses
What Happens if You Win a Breach of Contract Lawsuit?
In your lawsuit, you must specify what you want the defendant to pay you or anything else you want the defendant to do or stop doing in order to repair the breach. You can seek compensatory damages, where the defendant reimburses you for the financial losses they caused you to incur. You can also seek nominal damages, if the defendant did not cause you to lose money but only caused you avoidable expenditures of time and effort. Or, in some cases, you can seek to have the defendant specifically perform under the agreement. If you and the defendant agree to cancel the contract, the defendant can pay you restitution, which means returning things to the way they were before you signed the contract, such as by refunding a deposit that you paid them. However, most lawsuits settle before going to trial, so you and the defendant, with the help of your lawyers, will most likely be able to agree on an amount of money that the defendant should pay you that would satisfy the defendant’s obligation to you.
Resolving Breach of Contract Disputes Without Going to Court
Many breach of contract lawsuits are preventable. Drafting an airtight contract after reaching a thorough understanding with the other party is enough to stop most breach of contract disputes before they start. It is highly recommended to seek out a seasoned lawyer to assist with the drafting of your contract.
Contact Foldenauer Law Group About Breach of Contract Claims
A contract lawyer can help you avoid costly litigation when resolving business contract disputes. Contact Foldenauer Law Group, APLC in San Diego, California to discuss your case.