A breach of contract case occurs when an agreement or contract is broken. It can be in writing, verbal, or implied from specific circumstances. In these cases, one side believes that the other has broken the agreement and that it has hurt that person or entity in some way.
A contract is an agreement between two or more parties where everyone involved agrees to do, not do, or pay something according to the terms of the agreement. While it can be verbal, some documentation must prove its existence. This part is necessary if you want to sue someone for breach of contract.
Requirements for Making a Contract Legally Binding
For a contract to be legally binding and enforceable (which allows someone to sue in court), it must have the following:
- Mutual Agreement — Both sides must agree to be bound by the contract and agree on all the important terms.
- Offer and Acceptance — One side makes a clear or definite offer and agrees to be bound by the contract, while the other side accepts it (which makes them bound by the contract).
- Consideration — Each party in a contract must give something of value to the other. It can be legally complicated, so talk to a lawyer if you’re not sure if something of value was exchanged in your situation.
- Capacity by All Parties — Every party must have a good understanding of what they’re doing. If someone is a minor or doesn’t have the mental capacity, there may not be an enforceable contract.
- Legal Purpose — The contract must be made for the purpose of not breaking the law, because a judge can’t enforce a contract for doing something illegal.
Some contracts must be done in writing. This includes contracts related to the purchase and sale of real estate as well as any contract that will be in force for a year or more. You should speak to a qualified attorney if you’re not sure.
What You Should Consider Before Taking Legal Action
If it’s a written contract, you must file a lawsuit within four years from when the agreement was broken. If it’s a verbal agreement, you must file it within two years from when it was broken. If you’re defending yourself and the lawsuit wasn’t filed within the deadline, you can ask the judge to dismiss the case.
Look at the contract to see if it says anything about what happens if there is a breach. Written contracts will sometimes have something that says what can happen if one party sues the other. It can say that you must go through the arbitration or mediation process before the other party can be sued. It may even say that arbitration is the only option.
The contract may also say that either party has to file a lawsuit within a certain state and according to its laws. It may also say that if one party decides to sue the other, the one that loses must pay the other party’s attorney’s fees.
For breach of contract cases, the area or jurisdiction where the case has to be filed may be any of the following places:
- Where the defendant lives or does business.
- Where the contract was made.
- Where the contract is to be (or was) performed.
- Where the contract was broken.
You must sue the person or business that entered into and breached the contract. Only that person will be responsible for damages caused by the breach of contract.
Common Defenses to a Breach of Contract Claim
The defendant may argue that he or she acted according to the contract, which is a common defense in cases where there’s a disagreement about what one party agreed to do. The defendant may also argue that you broke the agreement first or that it’s your fault that this person couldn’t do what he or she agreed to do.
Because some contracts must be in writing, the defendant may claim that it was supposed to be in writing but never was (what’s referred to as the “Statute of Frauds”). These situations can get complicated, so be sure to speak to a qualified attorney for more information.
If you’re being sued for a breach of contract and are looking for a business lawyer in Corpus Christi who can help you, be sure to reach out to Gale Law Group. We have a team of experienced professionals who would be more than happy to speak with you about your specific needs!