Contracts are at the heart of your business; they define your relationships and keep operations moving. Without contracts in place, the profitable relationships that business owners enjoy would be impossible to manage. As maintaining the sanctity of contractual agreements is one of the most important purposes of business law, when one party fails to uphold their end of the bargain, the other has the right to hold them accountable.
Companies across Nevada and beyond look to Hone Law to skillfully maneuver breach of contract disputes. Our agile breach of contract lawyers are adept at resolving cases quickly and efficiently, but when necessary, we prepare for the possibility of trial. Our extensive experience coupled with our unwavering commitment to our clients’ interests is what sets us apart. To speak with an attorney for contract breach, contact us at (702) 608-3720 today.
What Are the Fundamental Elements of a Breach of Contract Case?
When one party does not fulfill any of its contractual obligations, this is known as a breach of contract. Because of the frequency of contract breaches, the law used to resolve these disputes is constantly evolving. While the subject matter of these disputes varies from case to case, the essential elements are generally the same:
- A valid and enforceable contract exists, complete with an offer, acceptance, and the exchange of consideration.
- The other party breached the contract through a certain act.
- You suffered damages because of the breach.
- There is legal standing for you to sue for breach of contract.
It is also important to note that Nevada maintains a statute of limitations for contract breach cases. According to NRS 11.190, you have six years to sue for a written contract and four years to sue for an oral contract.
What Are the Main Types of Contract Breach Claims?
There are a range of different acts that may breach the contract. The following are three of the main types of claims that we regularly navigate for our corporate clients.
Material Breach
A material breach happens when one party fails to fulfil any of the critical obligations that form the basis of the contract. This form of breach is considered significant, and one party may receive a substantially different result than was specified in the contract. Such a breach allows the injured party to seek monetary damages and other legal remedies, or even terminate the contract altogether.
For instance, if a vendor refuses to provide payment under an agreement, this may constitute a material breach. If the payment was merely a day late, however, the breach may not be considered material. If your company was the victim of a material breach, an experienced breach of contract lawyer at Hone Law can help you sue for monetary damages to recoup your losses.
Minor Breach
A party can be sued for a minor breach if they violate a portion of the contract but uphold other terms of the agreement. This type of breach may also be called a partial or immaterial breach, and it does not typically amount to enough damage to sue for non-performance. In the case of a minor breach, the injured company can recover damages in a cause of action but is still required to perform under the contract.
Anticipatory Breach
This type of breach occurs when you become aware that the other party in the agreement will be unable to fulfill the terms of the contractual obligation on time. This could be verbal – through outright refusal to uphold the contract or through an apologetic statement that they will be unable to fulfill the agreement – or it could be done through an action that makes it impossible to complete the obligation.
For example, if a company shuts the doors to their business or if they sold the subject matter in question to another entity, they may be held accountable for an anticipatory breach. Here, you need not wait until the delivery date passes to seek legal remedy. Your attorney for contract breach may file a claim to terminate the contract or recover damages the moment you anticipate the breach.
What Remedies Are Available for a Contract Breach?
If your company suffered from a type of breach of contract, you may have standing to sue the breaching party to pursue a legal remedy. Depending on the jurisdiction of your case and the facts of the dispute, the potential legal remedies for a contract breach may include:
- Monetary damages for the losses incurred due to the breach of contract
- Rescission, which allows a contractual party to cancel the agreement
- Restitution to restore the injured party to the position it was in before the contract was formed
- Punitive damages to punish the breaching party for their actions. These damages are typically reserved for situations involving intentional misconduct or fraud.
How to Reduce Your Risk of a Breach of Contract
Even though you cannot control the actions of the other party, and therefore can never entirely avoid breach issues, there are certain steps your company can take to reduce the risk of a breach. One of the most valuable ways to limit your company’s exposure to breach of contract issues is by drafting airtight agreements. At Hone Law, our team of breach of contract lawyers work with Nevada companies to develop meticulously crafted contracts to reduce the risk of breach and mitigate your losses in the event of a contractual dispute.
Additionally, companies that actively monitor their contract performance may be better situated to foresee possible breaches and respond accordingly. When containing losses associated with breaches of contract, time is of the essence. Establishing a monitoring procedure with clear and defined performance metrics is key to identifying the warning signs of potential breaches.
How Can a Hone Law Breach of Contract Lawyer Protect Your Company in a Lawsuit?
When a breach of contract occurs, your company needs sharp, refined representation to protect your commercial interests. At Hone Law, our unique collaborative approach allows us to deliver a consistent, high-quality product to our clients. Whether you need help defending your company or want to pursue a legal claim, you can count on us to zealously advocate for your interests. To speak with an experienced breach of contract lawyer today, contact us at (702) 608-3720.