Did you know that 70% to 80% of businesses are governed by contracts?
There’s hardly a business owner who can elude the risk of dealing with a breach of contract. The consequences of getting involved with one of these disputed agreements can be devastating.
Elements of breach of contract are crucial in understanding what bringing one of these lawsuits means. Before deciding to go to court, the plaintiff must grasp the consequences of this lawsuit.
This article will discuss the elements of breach of contract to help you understand the risk of pursuing litigation.
Table of Contents
A Valid and Legally Binding Contract
A legally binding and valid contract is one that meets all the required elements of a contract. These elements include offer and acceptance, consideration, and contractual capacity. This also includes free consent, legality of purpose, and legality of form.
An offer is a promise to do something on the part of one party. An acceptance is a response from the other party that indicates an agreement to the offer. Consideration is the price each party pays for the agreement, and it must be something of value.
A contract can only be valid if both parties are able to enter into it. This means they must be of the legal age and of legal soundness of mind.
Free consent happens when there is no force, lies, or deceit in the contract or any other kind of pressure. Finally, the contract must follow the laws, be written, and be signed by witnesses.
A Breach of a Duty by One of the Parties
In most cases, a breach of duty happens when one party doesn’t fulfill their contractual obligations. They fail to do what’s expected of them. This can include delivering goods or services or providing the agreed-upon duties.
When a party fails to perform and fails to live up to the terms of the contract, then a breach of duty has occurred. If a duty is not addressed, it could break the agreement and make the breaching party responsible for damages. It’s essential that each of the parties uphold their obligations for the agreement to remain in effect.
Damage as a Result of the Breach
The most common type of damages resulting from a breach of contract is expectation damages. The non-breaching party receives compensation equal to the promised but unfulfilled contractual benefit.
Another type of damage is consequential damage. This compensates any losses that the non-breaching party incurred as a direct result of the breach.
Additionally, there are incidental damages that result from the decaying of benefits that could have been enjoyed had it not been for the breach.
Finally, the party that did not break the contract can get reimbursed for lawyer and court costs. They might also have to pay other legal fees to pursue their claim.
If you’re involved in a breach of contract in Utah, make sure to hire Utah business litigation attorneys. These attorneys are knowledgeable in the realm of contractual damages. They can use their expertise to help estimate and recover the amount of damages due to a breach.
Knowing the Elements of Breach of Contract
The elements of breach of contract are important to understand to ensure you won’t fall victim to malicious actors. To best protect your interests, consider utilizing a qualified attorney to ensure your agreements match industry standards and protect your rights if there is ever a dispute.
Don’t wait! Start protecting yourself today!
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