From creating legally binding agreements between two or more entities to outlining the terms and conditions regarding the same, contracts are an essential part of every business. However, hundreds of contract breaches happen yearly, and unfortunately, the numbers keep increasing. In fact, according to recent reports, contract breaches account for
33% of civil trials. The only difference is that it is now easy to fight a contract breach and get the compensation you deserve.
Even though complex, proving a breach of contract the right way is essential to recover from the damages and mitigate the risks of a breach in the future. Should this occur, it is the responsibility of the victim party to prove the alleged damages to establish validity for their claim. The
business attorneys at King & Jones recommend the victims get legal help as soon as possible. In this article, we share six tips to prove a breach of contract.
Understand the Terms of the Contract
A contract involving an offer, acceptance, and mutual consent legally binds two or more parties to a cause. The first step is to understand the terms and conditions of the contract in order to determine whether it has been breached or not. This means reviewing the material elements that make up the contract, such as the agreement's purpose, the offer, the time frame for completion, the technique used to complete the service, and the amount in debt. You must clearly understand the contract terms to make a strong case and counter each neglected clause in front of the at-fault party.
Gather Evidence to Prove the Breach
You need to gather evidence to prove that the contract was enforceable and the other party failed to fulfill their commitment. Look at the following elements:
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Offer: Both parties had the intention to sign the contract.
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Consideration: For a contract to be valid, it must be a give-and-take agreement.
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Acceptance and Mutuality: Each party agreed to the terms and accepted the agreement.
Considering these elements, collect evidence to prove the validity of the contract and the breach; this includes invoices, photographs, statements, letters, and videos. Remember that the more evidence you have, your case will be stronger.
Send Notice of Breach of Contract
In most cases, a contract breach results from a misunderstanding or an honest mistake from the other party. Therefore, instead of filing a petition and taking the case straight to court, it is important to notify the other party and rework the terms if possible. This not only shows goodwill but also saves a lot of money. Sit with your legal advisor and draft a notice clearly stating the breach of contract and send it via email or post.
Understand the Damages
If it feels unlikely to resolve the conflict through mediation, start assessing what the other party owes you in terms of damages, such as any outstanding payments, loss of revenue, and additional expenses because of the breach. A numerical value will help you determine whether you should opt for a lawsuit or resolve it outside court.
Consider an Alternative Approach
If it was a genuine mistake and the at-fault party is on board, we recommend resolving the issue out of court. There are two approaches that you can use:
1.
Mediation: A neutral third person (mediator) is present to help both parties reach a decision.
2.
Arbitration: Resolving the matter with the help of an arbitrator or a panel of arbitrators. Unlike mediation, arbitration gives decision-making authority to the arbitrator.
Determining Whether a Lawsuit is Viable or Not
Was the alternative approach a failure? It is time to take the case to court. However, before you file a petition, you must meet the following conditions:
● The statute of limitations has not expired
● You have assessed the evidence
● You have compared the cost of
damages and litigation cost
To prove the breach, you must also consider the potential argument of the defense and how to counter it. Hiring a lawyer is highly recommended at this stage.
The Bottom Line
Proving a breach of contract requires a thorough understanding of the contract elements, gathering evidence, notifying the opposing party, mitigating the damages, seeking legal advice, and being fair, patient, and amicable throughout the process. When filing a breach of contract case, your priority should be to resolve the situation in the friendliest way possible. Doing so will help you avoid needless expenses and ensure you don't lose a valued business relationship.
