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How Should I Approach a Breach of Contract Lawsuit?

Posted by Jonathan Krems | Apr 18, 2024 | 0 Comments

In today's Freedom Friday blog and email newsletter, I want to answer a question I am asked by many of my breach of contract lawsuit clients, and that's something along the lines of “What can I expect in my breach of contract lawsuit?”  Or, put another way, “How should I approach the case?” Again, there's no definite answer to those questions, especially when the facts of the case are different, and there is never any guaranty of recovery.   However, there are common expectations all small business owners should have in their respective breach of contract lawsuit, and there are certain ways that they should approach the lawsuit, as well.  In today's Freedom Friday blog and email newsletter, I'm answering the question, “How should I approach a breach of contract lawsuit?”

First of all, before we talk about how to approach a breach of contract lawsuit, we need to understand what breach of contract means.  You must have an actual contract with a valid offer, acceptance, and consideration.  You also have to show that you fulfilled your part of the contract, but the other party (the defendant) did not, and what the other party did not do could be a number of issues, including not performing a promised service, not delivering certain goods, starting work (e.g., construction) and not finishing it, not making payment(s) that were promised, or not meeting some other contract term(s).  Lastly, in order to prove breach of contract in court, you have to show you suffered actual economic losses as part of your damages.

Next, it's important to understand prospective resolutions, or practical outcomes, for your breach of contract case.  Depending on the nature of your breach of contract case, you will need to sue for the amount of your actual economic losses (if you've calculated your liquidated damages), but you can also sue for “specific performance,” to request the Court to require the defendant to complete the work they failed to finish, or to award monetary damages for your losses in lieu of incomplete work.  For example, if you hired a company to complete a construction project, and they did not finish it, you may be able to sue for the amount you paid to a second company who came in and completed the work that the first company did not finish.

Lastly, with every kind of breach of contract case, its important to consult with an experienced business attorney.  Especially if you've been unable to resolve a breach of contract situation directly with the other party, an experienced business attorney can assist you in negotiating directly with the other party who breached the contract, and sometimes having an attorney send a letter or make a phone call to the other party will make the other party take the situation seriously and take responsibility for their actions or lack thereof.  However, if the other party still does not respond, an experienced business attorney will help you figure out the next steps moving forward, which might include further negotiation, mediation, arbitration, or filing a lawsuit in court.  Most people know that if a case is going to court, it will cost them more, and so they wish to avoid going to court if they can seek a different resolution.    However, an experienced business lawyer will be able to help you determine the best course of action in handling your breach of contract case.

Thinking about starting a small business?  Or maybe your small business is having issues with contracts, leases, business partners, collection issues, or experiencing other barriers to growth?  Please contact me at [email protected] to schedule a FREE strategy session.

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About the Author

Jonathan Krems

Jonathan is the Founder and Managing Attorney of Liberty Legal Solutions, LLC, a law firm dedicated to building, protecting, and defending the business and personal interests of our clients in Oklahoma.  Jonathan's primary practice areas are business law, contracts and agreements, business liti...


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