- April 20, 2018
- Posted by: Priscilla Bowman
- Category: Legal Law, Legal Procedure
If you are a businessman there are a lot of contracts that you will be holding but what will happen if one fails to do what the contracts say. Well, your business will be affected right? So what are the legal procedures if someone committed this crime? What is a breach of contract anyway? Breach of contract occurs what the other party fails to follow what is written in the contract you both signed. There are 4 types of breach of contract, the minor, which is not so severe, this is where they compiled what is the task for them and reached the deadline but there are some errors in it. The fundamental, this is where you can file a case on the court, example if you have to move to your newly bought house but at the time you move the former owner of the house is still there and disagrees to leave your property.
The material, this is where a clear breach of contract is made, example if you rent a car with a fifty percent down payment and the full payment is after you use it and you fail to pay the bill where you are already done using the car. And the last one would be the anticipatory breach, this is where you already anticipate that the other side will fail to do their part, example if you have a building that is supposed to finish on December 1 but it is already November 25 but it still not starts it will be impossible to finish a building with five days. These are the most common example of a breach of contract non-payment, defective work, failure to comply with the deadline and breaches of warranties. So how can you prove if someone breaches his contract? Before deciding to file a case against them you write a letter first. The letter content would be how they will compensate for the damage they have done and to avoid any cases filed in the court. You must also specify all the things that they breach to make sure you did not write something wrong because they can use it to counter your claims. It is highly advisable to hire a professional lawyer to write this letter. Include claims of interest. So what are the legal acts to sort out the dispute? First is compensate for the damage where the accused pays money to compensate for the damage being done by his act. Reformation, this is where you make a new contract and fix the things that cause the disputes and any other problems. Specific performance, this is where the court orders both parties in a given time to do what the original contract really says. Reminders signing a contract is very difficult you must think and know your capabilities if you are able to do what is written in the contract before even deciding to sign one if not the walk away from it.