As a small business owner, you will probably see and enter into several commercial contracts. For everything from inventory to property maintenance, these documents are often essential to operations. In the best of circumstances, the parties will fulfill the terms of their agreements without issue. However, there can be times when a party will commit a breach. If you and another party have a contractual dispute, it’s essential to understand its possible impact on you and your enterprise. Here is more on how a breach of contract can affect your small business.
Breach of Contract Issues are Common
Every day Florida small business owners sign various types of contacts. Depending on your industry, you may have contracts with supply vendors, maintenance companies, commercial real estate landlords, and other companies and service providers. At some point, you may feel that another party has not fulfilled their part of your agreement or vice versa. When you have this type of conflict, you may be in a breach of contract dispute.
Breach of contract issues are relatively common in business. Sometimes, the disagreement may be minor and easily resolved. However, there can also be more complex situations that can become contentious and costly if left unresolved. Therefore, if you believe that you are in a breach of contract dispute, you should contact an experienced Florida business attorney to discuss your situation as soon as possible.
How Can I Tell There is a Breach of Contract?
To begin with, before you can tell if there is a breach of contract, you have to determine if the contract at issue is valid. In its most basic terms, a valid contract will have these elements:
- Offer-one party makes an offer for goods or services.
- Acceptance-the other party accepts the offer.
- Consideration-each party provides something of value. In a business context, consideration can be an enforceable promise as well as payment.
- Capacity-both parties are legally capable of entering into the agreement.
- The contract terms are reasonably certain, and
- The contract terms are legal.
In addition, some agreements must be in writing to be valid and enforceable. For instance, transfers of land need to be in writing. Additionally, a contract for a sale of goods for $500 or more and leases in effect for more than a year must also be in writing to be considered valid.
If you are unsure of whether you have a valid contract, you should contact a Florida business attorney to review your case. Your lawyer can help you determine if your agreement is valid and how to proceed with your breach of contract issue.
Breach of Contract
Once you have established that you have a valid agreement, a breach of may exist when:
- A party has failed to comply with a contract term(s);
- The non-breaching party has suffered financial damages;
- Those damages are connected to the breaching party’s failure to perform the contract term(s).
What is a Material Breach?
A material breach is a breach that is central to the contract. This type of breach is for something important to the overall agreement that when it is not done or is done incorrectly, it will excuse the other party from completing their end of the bargain. Not every contract violation will be a breach or material breach. Therefore, if you have a contractual dispute, it’s vital that you discuss the matter with an experienced business lawyer. Your attorney can review the matter and help you determine the extent of the breach.
What Remedies are Available for a Breach of Contract?
Several types of remedies may be available in a Florida breach of contract case. Generally, in these cases, an injured party can seek:
- Damages- compensation for their expenses associated with the breach. These damages can be general, meaning that they are for the injured party’s actual costs.
- The non-breaching party can also ask for special damages. These are costs incurred for other things associated with the breach.
- Punitive damages may also be available if the breaching party’s behavior was egregious.
- Rescission or canceling the contract is also a potential remedy. Under this remedy, the injured party would be excused from performing their obligations under the agreement.
Breach of contract damages can be complex. If you believe there has been a breach between your small business and another party, you should contact an experienced Florida business attorney to discuss your case.
Breach of Contract and Your Small Business
Ideally, parties to contracts would perform as agreed, and there would never be any breach of contract situations. However, as a small business owner, you will probably run into this issue over the life of your enterprise. Depending on the severity, a breach could cause operational delays and have significant financial consequences for you and your small business.
If you believe that your small business may be dealing with a breach of contract dispute, it’s crucial that you contact an experienced Florida business attorney as soon as possible. Your lawyer can help you evaluate the breach and help you determine the best ways to protect your small business.
Contact a Florida Business Attorney Today
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent small business clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.