Contracts are crucial for any business. They provide structure, predictability and reliability – at least in theory. As a business owner, you enter into contracts and trust the other party to perform its duties. Unfortunately, it does not always work out.
The other party may fail to live up to the terms of the contract. This may disrupt your plans and cause harm to your company. If this happens to you, you may wonder if you can sue the other party for breaching the contract. Here is a general overview of what you must prove in a breach of contract lawsuit.
The existence of a valid contract
The first thing you need to show is that there is a legitimate contract in place. This is usually simple if there is a written contract signed by both parties. However, if it is only a handshake or oral agreement, you may have a more difficult time proving the formation of the contract.
Fulfillment of your duties
If you want to succeed in a breach of contract lawsuit, you must be able to provide evidence of your performance. For example, if you are paying a contractor to provide you with a service, you must have proof of your payment.
The failure of the other party to perform
Of course, in order to win a lawsuit, you must have evidence that the other party failed to adhere to the terms of the contract. Your lawyer can help you determine what counts as a breach of contract.
Proof of damages
The goal of a breach of contract action is to receive monetary compensation for the losses you incurred due to the breach. For example, you may need to hire another contractor.
It can be frustrating to deal with contractors who delay or completely derail your plans. Thankfully, litigation is possible to recover the financial losses in this situation.