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A contract is a legally binding agreement or promise that is made between two or more parties. The law recognizes that promises contained within a contract become duties.

When a contract is breached, the person who suffers is guaranteed protection under civil legal statues. When a person suffers losses because of a breach of contract, they have the legal right to seek compensation for their losses in a civil legal case.

A breach of contract is not a criminal offense, and therefore the victim can seek only monetary damages.

A contract is strongest when it takes the form of a written agreement, though a verbal agreement is also an enforceable contract.

What Constitutes a Contract?

In order to be considered a contract, both parties must voluntarily enter an agreement and the terms of the contract must be understood and agreed upon by both parties.

As a general rule, all parties to a contract must perform as specified in the contract unless both parties agree to change the terms of the contract or when the other accepts one party’s deviance from the contract by action or non action.

If a person has not accepted any deviance from the terms of the contract, the deviant party is said to be in breach of contract.

Breach of Contract

Breach of contract most often involves a failure to provide goods or services as stated in the terms of the contract or the failure to pay for goods and services as outlined in a contract.

A breach of contract may also involve one party's action, which makes it impossible for the other party to fulfill the duties outlined in the contract.

Not all breaches of contract have to be "contract killers" which require a lawsuit to remedy. But if the breech of contract is material, then the injured party may wish to speak with a qualified attorney to determine their legal rights and options.

The party who has suffered material damages caused by another party who breached a contract with the former has the legal right to seek compensation in a civil law suit.

The plaintiff in this case is typically entitled to what they should have received based on the terms of the contract.

Recovery from a breach of contract does not allow the plaintiff to seek remote losses related to the breech of contact.

The court, which handles civil cases involving contracts, will often depend on the nature of the case:

• Who the plaintiff and defendant Are
• Where they reside
• The amount of compensatory damages in question

Money Involved

In some cases, when the amount of money sought in a civil case is below a certain amount the small claims court will handle the contract case. When the contract case involves larger amounts, the case may be heard in a different local, state, or federal court.

When the case involves government agencies, the federal or state court of claims has jurisdiction over the contract dispute.

If you would like to learn more about a contract with regards to your legal rights and options, please contact us to speak with a qualified and experienced attorney in your area who can evaluate your case to determine how best to protect and maximize your legal interests.

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